Mastek rose 1.07% to Rs 126.95 at 12:35 IST on BSE, with the stock recovering on bargain hunting after Friday's 9.9% slide triggered by the company reporting weak Q1 earnings.
Meanwhile, the S&P BSE Sensex was up 97.48 points or 0.48% at 20,247.33
On BSE, 6,623 shares were traded in the counter as against average daily volume of 31,522 shares in the past two weeks.
The stock hit a high of Rs 128.85 and low of Rs 124.05 so far during the day.
Shares of Mastek had declined 9.9% to settle at Rs 125.60 on Friday, 19 July 2013, after the company during trading hours on Friday, 19 July 2013, reported poor Q1 results.
Mastek's consolidated net profit declined 65.02% to Rs 7.10 crore on 3.13% decline in operating revenue to Rs 222.30 crore in Q1 June 2013 over Q4 March 2013.
Mastek's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) declined 30.07% to Rs 18.60 crore in Q1 June 2013 over Q4 March 2013. The decline in EBITDA margin was due to drop in UK revenue, higher product development expenditure and mandated provision for receivables greater than 180 days, Mastek said.
Mastek said that the drop in revenue in Q1 June 2013 was primarily in the UK with the successful completion of one project and the anticipated ramp down in another project totaling to Rs 12 crore. The profit after tax (PAT) of Rs 7.10 crore in Q1 June 2013 includes additional tax provision during the quarter for tax on dividend received from a foreign subsidiary and deferred tax charge as compared to negative tax in the previous quarter, the company said.
Mastek's 12-month order backlog was Rs 560 crore as on 30 June 2013.
The company's cash & cash equivalent increased to Rs 281 crore as on 30 June 2013, from Rs 159 crore as on 31 March 2013. The cash balance includes advance monies received from customers of about Rs 79 crore, Mastek said.
Mastek added 4 new clients during the quarter. Total client count as on 30 June 2013 was 117.
Mastek is a leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
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