The BSE-listed company specialises in building, maintaining and managing bespoke digital solutions for clients in government, health, retail, and financial services. Digital solutions constitutes more than 50 per cent of its business.
In an interview to CNBC-TV18, Sudhakar Ram, MD & Group CEO of Mastek spoke about the results and his outlook for the company.
The impact of the currency will mainly be seen in the topline and not so much in the margins, assures Sudhakar Ram, MD & Group CEO, Mastek, adding that the company is comfortably hedged.
After Mastek's joint venture (JV) with The Law Society came to an end in Q4 FY16, its revenue growth declined by 9 percent. But Sudhakar Ram, MD & Group CEO, says he expects a modest improvement in revenues in Q1 FY17.
The company had posted a net profit of Rs 6.44 crore for the corresponding period last fiscal, it said in a BSE filing.
Fifty percent of our revenues comes from the government verticals, CEO Sudhakar Ram told CNBC-TV18.
Operating margin in Q2 was at 3.1 percent against 9.5 percent Q-o-Q while EBITDA skumped at Rs 4.04 crore against Rs 12.6 crore (Q-o-Q).
Sudhakar Ram, CMD & CEO says this quarter around 80 percent of the business came from strategic high value, high margin kind of business both from the government and insurance business.
Net profit increased to Rs 18.3 crore in the quarter ended December 2013 from Rs 15.1 crore in previous quarter while total income rose marginally to Rs 242.4 crore from Rs 238.5 crore during the same period, impacted by North American operations.
If reports are believed, the UIDAI project is likely to introduce one of the largest IT contracts worth many a crore. As one of the IT firms that have qualified and empanelled for the UIDAI, Mastek says that the project is big, but as large as reported, however, it sees a lot of scope “over a period of time.”
Second tier software services firm Mastek Ltd on Tuesday posted a loss in Oct-Dec, hurt by a goodwill impairment charge and higher depreciation at one of its facilities, sending its shares down 9% to a 20-month low.