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Home / India News / 2007 / January / January 11, 2007
Mastek Group Oct-Dec 2006 Quarter Income up 20%, PAT up 35%

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Mastek Group Oct-Dec 2006 Quarter Income up 20%, PAT up 35%

Mumbai, Maharashtra, India

Mastek Group, a leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide, announced its un-audited financial results for the quarter and half-year ended December 31, 2006 today.

The Group has reported a total income of Rs. 209.8 crore for the October-December 2006 quarter, compared with:

-- Rs. 175.1 crore achieved during the corresponding period last year (October-December 2005).

-- Rs. 198.9 crore delivered in the sequentially preceding quarter (July-September 2006).

Net profit for the quarter under review were Rs. 21.8 crore, compared to:

-- Rs. 16.2 crore for the corresponding quarter in the previous year.

-- Rs. 21.2 crore earned in the previous quarter.

For the half-year ended December 31, 2006, the Group reported an income of Rs.408.7 crore, a 24.5% increase over Rs. 328.2 crore registered during the corresponding period last year. This was driven by continued robustness in the European operations that recorded a growth of 36%, and improved contribution from the US operations that posted a 24% growth during the period. Net profit for the six-month period under review was up 37.8% at Rs. 43 crore compared with Rs. 31.2 crore reported during the corresponding period in the previous year.

The un-audited results were taken on record at the Board Meeting held on January 11, 2007.

Commenting on the results, Mr. Sudhakar Ram, the Chief Executive Officer, said: "While revenues and profits have been in line with expectations, I am quite pleased with the significant expansion of our order book during this quarter. We have added 4 insurance accounts and 5 major engagements with existing customers."

Interim dividend

The Board declared an interim dividend of 60% for the year, amounting to Rs. 3 per share, in line with its intent of enabling shareholder participation in the company's growth. The record date for payment of Interim Dividend will be January 17, 2007.

Performance Highlights : October-December 2006

In addition to delivering healthy revenues and earnings, Mastek was also able to strengthen its order book during the quarter under review. The Group added multiple new accounts in its focus - Insurance space, in the face of stiff global competition. Mastek also strengthened its relationships with existing customers, obtaining new multi-million multi-year engagements, overcoming competition from global SI players. These achievements are reflected in the noticeable expansion of Mastek's order-book that has grown from Rs. 360 crore to Rs. 405 crore at the end of the quarter ended Dec. 31, 2006. The growing pipeline, with a considerable ramp-up in the Insurance vertical, is expected to create a platform for longer term progressive performance.

During the quarter, revenues from European operations grew by 8.2% over the preceding quarter while revenues from US operation degrew by 5.4% in the same period. The Europe market contributes 67% and the US market contributes 17% to the overall Group revenue.

-- In the UK, Mastek strengthened its relationship with its major customers by securing further orders. The company's delivery team continued to successfully and consistently deliver against the key milestones set for the quarter. In addition to that, Mastek UK recognized revenues from its French operations during the quarter. The outlook in this market is positive, with the pipeline in both Insurance and non-Insurance in UK building up and a good probability of new customer acquisitions in the coming quarters.

-- The US operations were marked by new order wins from its existing anchor accounts. It won two large projects from a Credit Union Insurance company in the area of Collateral Protection Insurance and a major infrastructure support engagement from a large portal provider. It also continued to build-up its qualified sales pipe-line for the Insurance vertical.

-- Mastek Asia Pacific (MAP) secured a multi-million dollar order from a large Malaysian Insurance Group and the subsidiary of one of the Top 3 US Insurance Companies during the quarter.

-- Mastek's Insurance vertical had a significant second quarter. During the quarter, Elixir gathered significant traction and was selected as the platform of choice by 4 Insurance companies. Mastek also got new project orders from existing customers.

-- ITeS: Mastek's BPO operations, located at Mahape and Pune, serve as the delivery arm of Carretek LLC, Mastek's joint venture with Carreker Corporation. The focus is on payment processing operations for a large international bank based in US. Mastek has terminated the Alliance Agreement with Carreker Corporation. 100% of Carreker's shareholding in Carretek would be purchased by Mastek's US subsidiary - MajescoMastek with effect from January 1, 2007. Mastek continues to execute the existing contracts and is actively seeking to leverage the operation.

-- DCOTG: The quarter under review was relatively better for the Mastek-Deloitte JV, DCOTG, compared to the sequentially preceding quarter due to the successful ramp-up of earlier delayed projects.

Outlook

The performance outlook for Mastek is encouraging, given the qualitative and quantitative improvement in its order book position. 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. With a growing solutions business around Elixir in the Insurance space and a strong systems integration business through partnerships, Mastek is well poised to capture a significant market in the enterprise solutions market.

About Mastek:

Mastek, is a Rs. 701 cr., US $ 156 million (July 2005 - June 2006) publicly held, leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek operates across US, Europe, Japan and Asia Pacific regions. Incorporated in 1982, Mastek has been in the forefront of technology, which along with proven methodologies and processes, increase IT value generation to its customers through onsite and offshore deliveries.

For detailed results, please visit our Web Site http://www.mastek.com

To view the Q2 Results click on the link below :

http://businesswireindia.com/attachments/qtr2_results_2007.xls

To view the Revenue Analysis click on the link below:

http://businesswireindia.com/attachments/MastekRevenueAnalysis-Q2_2006-07.xls

Sanjay Mudnaney, Sr.Manager - PR, Mastek Limited, + 91 (022) 2824 7745 sanjaym@mastek.com

Source: Mastek Limited (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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