The Hindu Business Line : Mastek Q2 net rises 31%

Mastek has reported a 30.8 per cent increase in its consolidated net profit for the second quarter, aided by higher revenues as well as higher operating margins.

Net profit for the quarter rose to Rs 21.2 crore, up from Rs 16.2 crore in the corresponding year-ago quarter, while total revenues rose 20 per cent to Rs 210 crore (Rs 175 crore).

EBITDA margins rose to 18.2 per cent from 16.2 per cent because of better performance of the applications business, as also a turnaround in the performance of joint venture Mastek Deloitte consulting, said Mr Jamshyd Jussawala, CFO of Mastek.

The joint venture reported a topline growth of 11 per cent, with revenues at Rs 25.4 crore and a multi-fold increase in profit before tax, at Rs 6.55 crore (Rs 1.06 crore). However, an extra tax provision of Rs 2.64 crore had to be made because of a transfer-pricing assessment on the joint venture, said Mr Jussawala.

Mastek has terminated its alliance agreement with Carreker Corporation, with whom it ran its BPO operations Carretek LLC, said a statement from the company. Mastek's UK subsidiary will buy out the remaining stake in its 49:51 partnership and run it from its existing facilities in India.

For the January-March 2007 quarter, Mastek expects the group income to be in the range of Rs 222 to 226 crore and net profit after tax, and minority interest to be in the range of Rs 23.5 to 24.5 crore, said a statement from the company. The board has recommended a dividend of 60 per cent, or Rs 3 per share.

The company's shares closed lower on the bourses, closing on NSE at Rs 361.4 as against Rs 370.5 on Wednesday.

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