Mastek - Steaming ahead - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

Mastek - Steaming ahead

Apr 14, 2000

Mastek Limited has announced a four hundred per cent jump in net profits for the nine months ended March 2000. Net Income has gone up from Rs 3,995 m to 6,939 m and net profits have gone up from Rs 378 m to Rs 1,835 m. In view of the excellent results the company announced a 1:1 bonus in January 2000. Mastek Limited founded in 1982 is a publicly held global IT solutions company. It has recorded a compounded average growth rate of 60%.

What is particularly commendable is that the company has achieved this quantum increase in net profits despite doubling of employee costs - a key component for software companies and accelerated depreciation policies to take in to account increased obsolescence leading to doubling of depreciation provided.

In order to cash in on the opportunities provided by the liberalisation of the takeover norms (now Indian companies can acquire overseas companies upto ten times their net worth) it is shortly coming out with an American Depository Receipt issue.

Another notable feature relating to the company is the fact that it has derived a whopping 44% of its income for the current year from e-commerce, which is clearly the field from which maximum revenues are going to be drawn. Even leading information technology majors such as Infosys and Satyam have drawn only 20% of their total income from such areas.

One of its five leading clients has decided to considerably downsize the extent of offshore services rendered. The company has more than compensated for the loss by adding 18 new customers during the last quarter. The other heartening features of the company are:

  • Even geographical spread of business over North America, Europe and Southeast and Far East.
  • 6,000 man-years of experience, which shall give it the edge over newer entrants to the IT field.
  • SEI CMM Level of 4 likely to be upgraded to 5 shortly.
  • Preponderance of Fortune 1000 clients.
  • Attractive Employee Stock Option Scheme in place which will keep down attrition rates.
  • Y2k projects accounted for only 2% of its revenue, which means that there is no threat to the company’s revenue stream in future now that the bug is conquered.
Thus an extremely bright future lies ahead of the company, given the software boom in the country and the whole world.


Equitymaster requests your view! Post a comment on "Mastek - Steaming ahead". Click here!

  

More Views on News

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.

MASTEK Announces Quarterly Results (3QFY20); Net Profit Down 1.9% (Quarterly Result Update)

Jan 30, 2020 | Updated on Jan 30, 2020

For the quarter ended December 2019, MASTEK has posted a net profit of Rs 260 m (down 1.9% YoY). Sales on the other hand came in at Rs 2 bn (down 8.0% YoY). Read on for a complete analysis of MASTEK's quarterly results.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

MASTEK SHARE PRICE


Sep 28, 2020 11:53 AM

TRACK MASTEK

COMPARE MASTEK WITH

MARKET STATS