Mastek zooms 15 % post stellar Q2 results

Mid-cap software solutions provider Mastek has posted its second quarter earnings during the market hours. Profit for the quarter doubled on strong EBIT performance. Profits for the quarter in review stand at Rs 7.7 crore as against Rs 3.6 crore achieved in the previous quarter.

However, total revenues for the quarter fell 3.2 per cent quarter-on-quarter to Rs 125.9 crore primarily due to weak UK operations that contributed 92 per cent to total income of the company. Digital business contribution stands at around 50 per cent.

Mastek has registered an enormous 90.2 percent growth in EBIT to Rs 7.8 crore i.e translating into a 300 basis points margins expansion to 6.2 per cent compared to June quarter due to fall in consultancy & sub-contracting charges and travelling expenses.

IT company added 8 new clients during the quarter and 19 clients in first half of FY17, taking total count to 91.

The growth for the quarter was driven by the ongoing operational improvement initiatives, effective cost management and decrease in tax expenses, Mastek said in a statement.

Company also declared an interim dividend of Rs 1 per share.

Reacting to a stupendous set of results, shares of Mastek spiked up in trade to hit an intra-day high of Rs 153.90 i.e high 15 per cent before closing the day at Rs 148.80 up 12.68 per cent on NSE.