Mastek is a publicly held (NSE: MASTEK; BSE: 523704) leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek operates across North America, Europe, and Asia Pacific regions. Incorporated in 1982, Mastek has been at the forefront of technology and has made significant investments in creating intellectual property, which along with proven methodologies and processes, increase IT value generation to its customers through onsite and offshore deliveries.
Review of quarterly financial performance
On a quarter-on-quarter basis:
Mastek’s total income for the quarter under review at Rs 151.4 crore represents a decline from Rs 165.1 crore in the preceding quarter
The company’s margin performance for the quarter reflects
- Higher staff costs resulting from annual wage increases (that came into effect from July 1, 2010) and an increase in total headcount;
- Lower margins on account of project overruns in India / Asia and North America
- Enhanced R&D spend after the addition of a significant new client in the insurance vertical in North America;
- Lower utilisation during the quarter under review as newly hired employees tend to become productive with a lag.
These impacts neutralised the benefits of cost efficiencies in other areas and forex gains made during the quarter, resulting in an after-tax loss of Rs 13.5 crore for the quarter under review.
At the same time, Mastek has maintained its order book, with the 12-month order book at Rs 312 crore as on September 30, 2010, compared to Rs 306 crore as on June 30, 2010.
Operating highlights
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Foresters selects Mastek as technology partner in their transformational initiative
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The company added 2 new client accounts during the period under review.
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The company’s 12-month order book was Rs 312 crore as on 30 September 2010, higher than Rs 306 crore in the sequentially preceding quarter. In constant currency terms, the 12-month order book was higher at Rs 323 crore at the end of Q1FY2011.
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People: As on 30 September 2010, the company had a total of 3,360 employees, of which about 23% were based on-site while the rest were at various offshore locations
http://www.mastek.com/press-release/investors/mastek-julysept-quarter-total-1849.html