Software solutions provider Mastek's profit more than doubled to Rs 7.7 crore in July-September quarter from Rs 3.6 crore in preceding period, driven by strong operational performance despite revenue degrowth.
Revenue during the quarter fell 3.2 percent quarter-on-quarter to Rs 125.9 crore due to weak UK operations that contributed 92 percent to total income. Digital business contribution stood at around 50 percent.
Impact of Brexit on pound had an impact on rupee revenue, Sudhakar Ram, managing director & Group CEO said, adding the constant currency revenue growth was 1.5 percent in Q2.
Ram expects margin momentum to continue in the forthcoming quarters.
Abhishek Singh, Group CFO said, "While we expect topline to be under pressure due to adverse movement in pound, we expect the profitability momentum to continue in H2 FY17."
The company has registered a whopping 90.2 percent growth in EBIT (earnings before interest and tax) at Rs 7.8 crore and a 300 basis points expansion in margin at 6.2 percent compared to June quarter due to fall in consultancy & sub-contracting charges and travelling expenses.
Other income declined 28.6 percent to Rs 2.5 crore on sequential basis.
Mastek said it added 8 new clients during the quarter and 19 clients in H1 FY17, taking total count to 91 (last-twelve-month).
Its 12-month order backlog was Rs 220.1 crore (25.3 million pound) as on September 2016 compared to Rs 216.5 crore at the end of June quater.
The company's billable utilisation improved to 81.5 percent in Q2 from 80.2 percent in preceding quarter.
At 14:34 hours IST, the scrip of Mastek was quoting at Rs 152.15, up Rs 19.25, or 14.48 percent amid high volumes on the exchange.