The Hindu Business Line : Mastek Q2 net falls to Rs 4.1 cr

MASTEK group recorded a lower net profit of Rs 4.1 crore for the second quarter ended December 31, 2003 as compared to Rs 16.3 crore in the year-ago period.

Total income stood at Rs 95.5 crore for the quarter ended December 31, 2003 compared to Rs 97.4 crore achieved during the corresponding period last year.

Delayed customer decisions and execution delays is likely to bring some challenges for the company, "However, we are optimistic about facing these challenges. The IT budgets of customers is still not moving up so fast even though IT spends are happening," Mr Ashank Desai, Chairman, Mastek Group, told Business Line.

For the six-month period ended December 31, 2003, the company's income stood at Rs.186.9 crore vis-à-vis Rs 189.1 crore recorded during the same period in the previous year.

The company bagged a $50-million 10-year deal on the BPO front. As a consortium partner with Syntegra-BT, Mastek bagged the contract as part of the National Programme for IT within the UK's National Health Services System. "The BPO joint venture with Capita will help us to extend our footprint beyond IT. We are bidding for contracts now and have several prospects," Mr Desai said.

Even though Mastek billed three additional customers during the quarter, acquisition was lesser than expected "due to the postponement of decisions. We expect them to pay off for the next quarter," he added.

Moreover, revenues from the US operations dropped by 6 per cent due to the execution delays. As of now, the US contributes 31 per cent to the Mastek Group's overall revenues while Europe contributes 52 per cent.

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