Mastek surges as Q2 profit more than doubles

Mastek has soared 16% to Rs 154 on BSE after the company's consolidated net profit more-than-doubled to Rs 7.7 crore for the quarter ended September 30, 2016 (Q2FY17), despite decline in operational income. The information technology (IT) company had registered a profit of Rs 2.7 crore in the year ago quarter.

Total income from operations declined 4.3% at Rs 126 crore in Q2FY17 against Rs 132 crore in Q2FY16.

The company posted profit of Rs 3.6 crore on revenues of Rs 130 crore in Q1FY17. It recorded constant currency revenue growth of 1.5% on quarter on quarter basis.

EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved 260 basis points (bps) sequentially and 420 bps over the previous year quarter at 10.7%.

The growth for the quarter was driven by the ongoing operational improvement initiatives, effective cost management and decrease in tax expenses, Mastek said in a statement.

The board has approved payment of interim dividend @ Rs 1 per share (face value Rs 5 per share) (i.e. 20%), which will be paid to the eligible shareholders on or before November 16, 2016.

At 02:41 pm, the stock was up 14% at Rs 151 on BSE, as compared to 1.6% rise in the S&P BSE Sensex. The trading volumes on the counter jumped an over 10-fold with a combined 5.8 million shares changed hands on the BSE and NSE so far.


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