Mastek announces Q4 & FY 06 results

Mastek Ltd has announced the following results for the quarter & year ended June 30, 2006:

The Unaudited results for the quarter ended June 30, 2006 are as follows:

The Company has posted a net profit of Rs 155.50 million for the quarter ended June 30, 2006 as compared to Rs 126.30 million for the quarter ended June 30, 2005. Total Income has increased from Rs 856.30 million in quarter ended June 30, 2005 to Rs 1180.50 million for quarter ended June 30, 2006.

The Audited results for the year ended June 30, 2006 are as follows:

The Company has posted a net profit of Rs 492.60 million for the year ended June 30, 2006 where as the same was at Rs 473.70 million for the year ended June 30, 2005. Total Income is Rs 4014.40 million for the year ended June 30, 2006 where as the same was at Rs 2636.30 million for the year ended June 30, 2005.

The figures for the year ended June 30, 2006, are not comparable with the corresponding previous year figures since with effect from January 01, 2005, the Company has changed its Business model for the UK Operations. The Company started executing on-site projects in the UK which were earlier executed through its subsidiary. The Revenue earned and cost incurred by the Company for executing such project is included in the results of the current year as against the numbers for only two quarters during corresponding previous year.

The Consolidated results are as follows:

The Unaudited Consolidated results for the quarter ended June 30, 2006 are as follows

The Group has posted a net profit after tax and minority interest of Rs 205.90 million for the quarter ended June 30, 2006 as compared to Rs 147.30 million for the quarter ended June 30, 2005. Total Income has increased from Rs 1558.80 million for the year ended June 30, 2005 to Rs 1934.10 million for the quarter ended June 30, 2006.

The Audited Consolidated results for the year ended June 30, 2006 are as follows:

The Group has posted a net profit after tax and minority interest of Rs 690.90 million for the year ended June 30, 2006 where as the same was at Rs 534.50 million for the year ended June 30, 2005. Total Income is Rs 7011.10 million for the year ended June 30, 2006 where as the same was at Rs 5766.50 million for the year ended June 30, 2005.

The figures for the year ended June 30, 2006, are not comparable with the corresponding previous year´s figures since with effect from January 01, 2005, the Company has changed its Business model for the UK Operations. The Company started executing on-site projects in the UK which were earlier executed through its subsidiary. The Revenue earned and cost incurred by the Company for executing such project is included in the results of the current year as against the numbers for only two quarters corresponding previous year.

The Board of Directors has recommended a final dividend of Rs 3.50 per share (70% on par value of Rs 5 per share, after 1:1 bonus), subject to the approval of shareholders in the Annual General Meeting. Including the interim dividend of Rs 3 per share (60% on par value of Rs 5 per share), the total dividend recommended for the year is Rs 6.50 per share (120% on par value of Rs 5 per share). This is equivalent to 200% on the pre bonus shares, as against 150% for the year ended June 2005.

Commenting on the performance and business outlook, Mr. Sudhakar Ram, Chief Executive Officer, said, "In the last year, we made significant progress on three fronts in establishing our position as a leading solutions provider for the insurance industry; in delivering sustained value to all our strategic clients and growing these accounts significantly; and in building up a good pipeline in the two major verticals that We are focused on - insurance and e-government, Despite shortfalls overall in new account acquisition and growth rate, it is encouraging to note that we added three Top twenty Strategic Accounts in Insurance space and our Insurance business grew at 43% annually.

Source : Equity Bulls

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