Mastek’s Q4FY16 result disappoints

Mastek announced its quarter end results on April 19. On quarterly result front, Mastek’s revenue declined by 9.83 per cent to Rs 124 crore in Q4FY16 as compared to the previous quarter. The company’s other expenses decreased by 40 per cent to Rs 20 crore in Q4FY16 on quarterly basis. Therefore, its EBITDA has increased five times to Rs 1.29 crore in Q4FY16 as compared to the previous quarter. Mastek’s PAT stood at Rs 5.86 core with an increment of almost five times in Q4FY16 on quarter on quarter (QoQ) basis. PAT margin quarterly improved to a significant extent as compared to the previous quarter ended and stood at 4.71 per cent as compared to 0.57 per cent for the December ended quarterly results.

Total Income from operations for the year ended was reported at Rs 378.67 cr down by 43 percent as compared to the previous year.Net profit for the period is reported at Rs. 37 crore annually which is again down by 82 percent as compared to the previous year. PAT margin expanded by 85 basis points to 2.60 per cent in FY16 as compared to previous financial year. 

On Wednesday, the company’s share price is trading at Rs 149.30 on bourses and the shares are down by 3.27 per cent on intra-day basis. It likely due to a weak financial quarter ended results quarterly and annually. Amongst the major competitor Mastek is just ahead of Wipro on a CAGR basis, with the CAGR is reported at 11.81 percent CAGR as compared to Wipro’s 8 per cent CAGR.

Mastek is an India based company. The company is a global IT solutions and services outsourcing provider focusing on insurance, government and financial services verticals. The company’s offering portfolio includes business and technology services comprising of IT Consulting, application development, systems integration, software development, application management outsourcing, testing, data warehousing and business intelligence, Application security, CRM services and legacy modernization.