Mastek Q4 net down 65% to Rs 7cr on forex loss, weak UK ops

Moneycontrol Bureau

IT solutions provider Mastek disappointed the street with the fourth quarter (April-June) consolidated net profit falling 65 percent quarter-on-quarter to Rs 7 crore on forex loss and weak growth in UK operations, sending shares 7 percent lower.

Consolidated total income declined marginally to Rs 222.3 crore in June quarter from Rs 229.5 crore in previous quarter.

"The drop in revenue was primarily in the UK with the successful completion of one project and the anticipated ramp down in another project totaling to Rs 12 crore," the company said in its filing.

Revenues from UK operations slipped to Rs 96.77 crore from Rs 111.19 crore while North America's revenues increased to Rs 105.97 crore from Rs 101.04 crore Q-o-Q.

Mastek posted foreign exchange loss at Rs 3.47 crore during the fourth quarter as against forex gain of Rs 2.32 crore reported in previous quarter.

The earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to Rs 18.6 crore from Rs 26.6 crore due to drop in UK revenues, higher product development expenditure and mandated provision for receivables greater than 180 days.

The company received dividend of Rs 11.44 crore from its UK subsidiary.

Software services provider added 4 new clients during the quarter

At 13:43 hours IST, the stock was quoting at Rs 127, down 8.90 percent amid large volumes on the BSE.

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