Mastek Group Q2 Results: Total Income Up 47% And Net Profit Up 165%
Mastek Group Q2 Results: Total Income Up 47% And Net Profit Up 165%, Y-O-Y Revises Group Profit Guidance For 2002-03 Upwards From Rs.54-58 Crores To Rs. 64-68 Crores
(PRWEB) January 30, 2003
Financial Performance
Mastek Group Q2 Results: Total Income Up 47% And Net Profit Up 165%, Y-O-Y Revises Group Profit Guidance For 2002-03 Upwards From Rs.54-58 Crores To Rs. 64-68 Crores
Mastek Group today announced a total income of Rs. 97.43 crores for the quarter October - December 2002:
This represented an increase of 47% over October - December 2001 (Rs. 66.07 crores)
Sequentially, MastekÂ’s income grew by 6% over the previous quarter (July Sept 2002: Rs.91.63 crores)
Net profit for the quarter stood at Rs. 16.26 crores against:
Rs.6.13 crores for the corresponding quarter in the previous year (an increase of 165%)
Rs. 15.25 crores during July-September 2002 (a sequential increase of 7%).
The unaudited results were taken on record at the Board Meeting held on January 13, 2003.
Mastek Group revenue for the six months period ended December 31, 2002 was Rs.189.05 crores, an increase of 45% over the corresponding period in the previous year (Rs. 129.98 crores). The net profit for this six month period stood at Rs.31.51 crores, an increase of 207% over the corresponding period in the previous year (Rs.10.24 crores).
In the six months period ended December 31, 2002, the GroupÂ’s international revenue accounted for 96% of the total revenue, an increase of 44% over the corresponding period last year (Rs. 126.88 crores). This was led by a growth of 40% in the US & 38% in the European operations. The revenues from Asia Pacific also grew in the first half by 28% over the corresponding period of the previous financial year.
Commenting on the performance, Ashank Desai, Chairman and Managing Director, said, "We are addressing with full force the challenge of progressing our existing strategic accounts, particularly in the US. Having successfully delivered the pilots, quite a few of these accounts have already increased their business with us. In some accounts we see a ramp up over next few quarters. Although much would depend also on the US economy & annual IT-budget increases, our early successes do make us feel somewhat optimistic."
Performance Highlights : October-December 2002
In the US:
MastekÂ’s continued sequential revenue progression resulted from a ramp up of the US business, characterized by the opening up of new key relationships and extension of existing relationships.
The preferred vendor status accorded to us, last quarter, by one of the countryÂ’s largest asset management companies, bore fruit. We received our first order, entailing migration of some key customer facing applications from their legacy architecture to three-tier architecture.
Mastek entered into strategic relationships with two Fortune 1000 organizations, ranked amongst the top ten in their respective industries - Computer & Office Equipment and Apparel.
Mastek won several new projects from two insurance majors and one of the largest airlines in the world, all Fortune 1000 companies, based on relationships cemented in previous quarters.
In Europe:
In the UK, Mastek continued to work on the WorldÂ’s largest. net application to date. The application is expected to go live during the current quarter.
Mastek has received a large order from one of its existing customers, to develop software for derivative trading.
Mastek has commenced a pilot engagement with the European arm of a Fortune 500 company to develop a data warehousing solution.
In Asia Pac:
Mastek has successfully delivered the first phase of a prestigious channel management project for a UK based, FTSE 100 insurance major.
DCOTG:
Mastek-Deloitte Consulting JV had a very successful quarter, acquiring its largest ever outsourcing engagement from a Fortune 500, high tech manufacturing company. The JV saw sizeable growth in its CRM and Oracle Applications practice lines. Currently, DCOTG is working on 25 engagements with Fortune 500 companies in industries as diverse as automobile, healthcare, communication and consumer products as well as the public sector. DCOTG has launched an initiative to make Application Outsourcing account for the largest percentage of its business and is geared for more expansive engagements with strategic clients from a new facility at Mahape.
Technology:
Within weeks of MicrosoftÂ’s unveiling of the Tablet PC, the Technology Cell at Mastek has brought out a prototype demonstrating the effectiveness and business application of the Tablet PCÂ’s "digital ink". This takes Mastek beyond PDAs and Mobile Phones, into the world of next generation smart devices, where it will build technical skills using Microsoft. Net Compact Framework and Java 2 Micro Edition. The Technology Cell continued to build technical competence on such mainstream technologies as Microsoft. Net and Java / J2EE.
The latest versions of Microsoft, IBM, Oracle and BEA offerings on Application servers, Portal servers, EAI suites and tools were studied and assimilated.
The Technology Cell provided a high level of support to all delivery units in their major projects. This included complex technical tasks such as construction of application-specific, graphic-rich user interfaces in Java Swing; a deployment strategy for a secure, reliable and scalable Enterprise Integration Portal.
Governance:
Mr. S.D. Kulkarni, the former Managing Director and Chief Executive Officer of Larsen & Toubro Limited has joined the Board of Directors of Mastek Ltd. A Chartered Accountant by qualification, Mr. Kulkarni has over 35 years of experience in managing various functions and has led large Manufacturing/Engineering organizations. Mr. Kulkarni holds directorial positions in various reputed multi-national and Indian organizations.
New Initiative:
Mastek has decided to enter the IT enabled services market. Initially, Mastek shall be catering to the needs of its existing customer base. Mastek will make the necessary announcements as it makes significant progress in the initiative.
Guidance:
On reviewing the overall performance during the six months period ended December 31, 2002, Mastek revises upwards its Profit after Tax Guidance for the Group (including share of JV) for 2002-03 from Rs. 54-58 crores to Rs. 64-68 crores.
About Mastek:
Mastek, is a Rs. 293 cr., US $ 60 million (July 2001 - June 2002) publicly held, global IT application outsourcing company with global operations, that delivers cost effective quality solutions as per the customized requirements of Fortune 1000 organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek operates through 20 offices located in the 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.
Mastek follows methodologies that generate substantial value to its customers by reducing time-to-market and ensuring a high level of predictability in the time, cost and quality of its projects. The company also focuses on enhancing value for its customers by providing substantially superior IT solutions at a lower cost.
Mastek follows a unique subsidiary business model that facilitates Â’Customer IntimacyÂ’ and has a multinational executive board that drives its short and medium term global business strategy. The company has wholly owned international subsidiaries in USA, UK, Singapore, Malaysia, Germany, Belgium and an office in Japan, which cater to the needs of the specific regions.
For detailed results, please visit our Web Site http://www. mastek. com/content/investors/results. asp (http://www. mastek. com/content/investors/results. asp)
Investor Relations Contact:
Hitesh Danak
Investor Relations Manager
++91-22-28247893
Hiteshd@mastek. com
