Mastek tanks 15% on muted September quarter results

Shares of Mastek tanked 15 per cent to Rs 2,903 on the BSE in Wednesday’s intra-day trade after the company reported muted set of July-September quarter (Q2FY22) numbers. With today’s decline, the stock has corrected 21 per cent from its 52-week high level of Rs 3,666, touched in Tuesday’s intra-day trade.

In Q2FY22, the company’s dollar revenue increased 2.6 per cent quarter on quarter (QoQ) to $72 million (up 3.9 per cent in constant currency (CC)) while rupee revenue increased 3.4 per cent QoQ at Rs 533 crore. Net profit during the quarter also remained flat at Rs 81.5 crore as against Rs 80.2 crore in June quarter of the same fiscal.

Earnings before interest, tax, depreciation and amortization (Ebitda) margins also declined 80 bps QoQ to 21.1 per cent due to 6.5 per cent QoQ increase employee expenses. Deal win declined 1.8 per cent QoQ to $ 155.5 million.

The management, however, said despite increase in costs due to salary hikes and investments in sales & marketing, it has been able to maintain healthy operating Ebitda margin at 21.1 per cent. “We are confident that with refreshed focus towards new age practices and strategic investments, we are well placed to sustain the growth momentum. As an organization, we have made progress on our Vision 2025, strategic priorities and big bets that will drive accelerated growth in digital & cloud services over the next 3 years,” it said.

Despite the past two days’ decline, the stock has zoomed 123 per cent in the past six months, as compared to a 29-per cent rise in the S&P BSE Sensex. At 09:43 am, the stock was down 11 per cent at Rs 3,051 on the BSE, as against a 0.05-per cent decline in the benchmark index.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor