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Mastek Q2 consolidated net profit plunges 75%
By siliconindia
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Monday, 12 January 2004, 20:30 IST
MUMBAI: Software firm Mastek reported on Monday a sharp plunge in second quarter profit from a year earlier and retained full-year guidance despite expectations of challenging times.
Mastek's consolidated net profit for the October-December quarter fell 75 per cent to Rs 41 million ($903,000) while total income fell two per cent to Rs 955 million.
"We are doing well in Europe, but we are not picking up speed in signing contracts in the US side of the business," Mastek's chairman Ashank Desai told Reuters.
"But we are not changing our forecast for the full year," he said. "It is challenging, but we are optimistic of meeting it."
Mastek had earlier forecast a net profit of Rs 350 million for the year ending June on revenue of Rs 4.6 billion, with the bulk of both revenue and profit expected to be booked in the second half of the year.
Mastek's European operations accounted for 52 per cent of group revenue, while the United States accounted for 31 per cent.
During the past quarter, Mastek bagged a 10-year deal from Syntegra, a unit of British telecoms company BT Group Plc, for the development and maintenance of Britain's National Health Service system.
Mastek's joint venture with UK-based Capita Group Plc for back office services is expected to start operations in the April-June quarter this year.