Mascot: Strong topline growth. - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Mascot: Strong topline growth.

Jan 29, 2001

Mascot recorded a topline growth of 30.4% and a growth of 63% in net profits (without considering extrodinary items) on a QoQ basis. Excluding extra ordinary items the company recorded a drop of 36% in net profits on QoQ basis. The figures on a YoY basis are a whooping 700% growth in topline and net profit figure stood at Rs 153 m compared to losses of Rs 14 m.

(Rs m) 2QFY01 3QFY01 Change
Sales 755 985 30.4%
Other Income 29.2 35 20.5%
Expenditure 622 816 31.2%
Operating Profit (EBDIT) 133 168 27.0%
Operating Profit Margin (%) 17.6% 17.1%  
Interest 4 4 -2.6%
Depreciation 25 33 36.3%
Profit before Tax 133 166 24.7%
Tax 40 14 -65.3%
Extraordinary item 0 93  
Profit after Tax/(Loss) 94 60 -36.4%
Net profit margin (%) 12.4% 6.0%  
No. of Shares (eoy) (m) 27 27  
Diluted number of shares 27 27  
Diluted Earnings per share* 13.9 8.8  
P/E (at current price) 21.3 33.5  

In 2QFY01 the operating margins had improved significantly from 14% in 1QFY01 to 17%. But in 3QFY01 the operating margin has not improved compared to 2QFY01. It has remained stagnant at around 17%, infact has dropped marginally. This marrs the performance because of two reasons. Firstly this is quite low compared to industry standards (around 30%) and secondly giants like Wipro have managed to show a good improvement in margins.

According to the company the new business acquired does have a potential to be shifted offshore. Therefore, there is a scope of improving operating margins. The offshore contribution was quite low to the revenues at 16.3%.

The extra ordinary item of Rs 93 m is due to an acquisition of US $ 2.2 m being written off. The acquisition is expected to bring estimated revenues of Rs 220 m for the 2HFY01.

The geographic break up of revenues is 69% from the United States, 9% from Europe and 22% from Asia Pacific region. As the contribution from Europe is low the company may grow on business from this region in the future.

At a current market price of Rs 295, The stock is trading at P/E multiple 33.5 of times its 3QFY01 annualised earnings. Excluding the effect of extraordinary item the P/E multiple is 13 times 3QFY01 annualised earnings.

Equitymaster requests your view! Post a comment on "Mascot: Strong topline growth.". Click here!


More Views on News

Why Did Shares of Nazara Technologies Plunge Today? (Views On News)

Jun 18, 2021

Rakesh Jhunjhunwala-backed Nazara Technologies plunged over 12% today.

Birlasoft Hits 52-week High as Company Signs AI Partnership (Views On News)

Jun 9, 2021

The stock has rallied 350% in the last year. Is there more steam left?

What's Behind the Rally in Wipro Shares? (Views On News)

May 31, 2021

Wipro shares outperforms TCS and Infosys over the past year. Is the rally justified?

Happiest Minds Q4 Results: Profit Grows Over Six-Fold; Company Eyes 20% Organic Growth in FY22 (Views On News)

May 14, 2021

Key takeaways from Happiest Minds Technologies Q4FY21 results.

L&T Technology Shares Fall After Q4 Results. What Should Investors Do? (Views On News)

May 5, 2021

Despite strong deal wins and a low base in FY21, a big turn-off for investors was the muted FY22 revenue growth guidance.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jan 25, 2008 (Close)


  • Track your investment in IGATE GLOBAL with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks