Mastek: Lackluster numbers - Views on News from Equitymaster

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Mastek: Lackluster numbers

Apr 9, 2003

Mastek has posted a lack luster performance for 3QFY03. The company’s net profits have grown 2% sequentially. However, on the back of a lower interest costs and higher taxes the company has posted a marginally 1% decline in operating profits. On a YoY basis, the company’s net profits have grown by 45%, while the revenue have increased by 35% in 3QFY03. For 9mFY03, Mastek’s revenues have grown 42%. However, on the back of lower operating expenses and lower taxes the net profits have jumped 123%.

(Rs m) 2QFY03 3QFY03 Change 9mFY02 9mFY03 Change
Sales 958 978 2.1% 2,008 2,847 41.8%
Other Income 16 13 -23.6% 18 34 96.4%
Expenditure 761 774 1.7% 1,655 2,262 36.6%
Operating Profit (EBDIT) 196 204 3.8% 353 585 65.8%
Operating Profit Margin (%) 20.5% 20.8%   17.6% 20.5%  
Interest 1 2 47.4% 8 5 -34.4%
Depreciation 32 33 1.1% 82 85 3.8%
Profit before Tax 179 182 1.5% 280 529 88.6%
Extra-ordinary income / (expense) - -   - -  
Tax 16 21 30.4% 68 54 -20.6%
Profit after Tax/(Loss) 163 160 -1.4% 213 475 123.3%
Net profit margin (%) 17.0% 16.4%   10.6% 16.7%  
No. of Shares (eoy) (m) 14.1 14.1   14.1 14.1  
Diluted Earnings per share* 46.1 45.5   20.1 45.0  
P/E (X)   12.3     12.5  
*(annualised)            

The company is lowered its revenue guidance from 43% to 48% expected earlier to a current 26% to 30%. The net profit for FY03 is now expected to grow between 30%-40% as against an earlier guidance of 67%-78%. The management has cited lower ramp up in business from existing clients, reduction in order sizes and postponement of projects as reasons for lowering the revenue guidance.

At the current market price of Rs 560, the stock trades at a P/E multiple of 12.5x its 9mFY03 annualised earnings. The stock is likely to take a beating on the bourses due to a the earnings forecast being revised downwards.

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MASTEK Announces Quarterly Results (2QFY21); Net Profit Up 140.1% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended September 2020, MASTEK has posted a net profit of Rs 592 m (up 140.1% YoY). Sales on the other hand came in at Rs 4 bn (up 68.2% YoY). Read on for a complete analysis of MASTEK's quarterly results.

MASTEK Announces Quarterly Results (1QFY21); Net Profit Up 92.3% (Quarterly Result Update)

Aug 21, 2020 | Updated on Aug 21, 2020

For the quarter ended June 2020, MASTEK has posted a net profit of Rs 466 m (up 92.3% YoY). Sales on the other hand came in at Rs 4 bn (up 56.0% YoY). Read on for a complete analysis of MASTEK's quarterly results.

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