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Mastek slumps after Q2 outcome

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Mastek fell 11.49% to Rs 3021.10 after the company's net profit rose 1.6% to Rs 81.5 crore on 3.4% increase in revenue from operations to Rs 533.9 crore in Q2 September 2021 over Q1 June 2021.

On a year on year (YoY) basis, Mastek's net profit rose 37.8% and revenue from operations rose 30.3%.

Operating EBITDA was flat at Rs 112.8 crore in Q2 September 2021 over Q1 June 2021. It rose 30.3% on a YoY basis.

EBITDA margin stood at 21.1% in Q2 September 2021 compared with 21.8% in Q1 June 2021 and 21.1% in Q2 September 2020.

The company added 45 new clients in Q2FY22. Total client count as of 30 September 2021 was 649 (last 12 months, or LTM) as compared to 651 (LTM) in Q1FY22.

Twelve-month order backlog was at Rs 1,154.3 crore ($155.5 mn) as on 30 September 2021 as compared to Rs 940.5 crore ($127.5 mn) in Q2FY21, reflecting a growth of 22.7% in rupee terms and 18.8% in constant currency terms on Y-o-Y basis and Rs 1,177.7 crore ($158.4 mn) in Q1FY22, this represents a degrowth of 2% in rupee terms and flat in constant currency on Q-o-Q basis.

As on 30 September 2021, the company had a total of 4,510 employees, of which 3,411 employees were based offshore in India while the rest were at various onsite locations. LTM attrition stood at 24.2% as on Q2 FY21 compared with 19.6% in Q1 FY21 and 14.7% in Q2 FY20.

The total cash, cash equivalents and fair value of mutual funds stood at Rs 943.9 crore as on 30 September 2021 as compared to Rs 959.8 crore at the end of 30 June 2021. Net cash balance (after adjusting for debts) stood at Rs 719.1 crore as on 30 September 2021 as compared to Rs 702.9 crore at the end of 30 June 2021.

Arun Agarwal, global chief financial officer, Mastek, said: Q2FY22 has been another quarter of consistent financial performance. We reported Rs 533.9 crore revenue, reflecting a growth of 30.3% on Y-o-Y basis, demonstrating the strong fundamentals of our business. Despite increase in costs due to salary hikes and investments in sales & marketing, we have been able to maintain healthy operating EBITDA margin at 21.1%. We are confident that with refreshed focus towards new age practices and strategic investments, we are well placed to sustain the growth momentum, create values for our customers and maximize value for our shareholders.

Mastek is an enterprise digital transformation specialist that engineers excellence for customers across 41 countries worldwide including UK, US, Europe, Middle East, and Asia Pacific.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, October 20 2021. 10:00 IST