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E n c o u r a g i n g q u a r t e r …
Mastek reported its Q2FY12 revenue and earnings, which were above our
estimates. Constant currency revenues grew 2.6% while rupee rupees
grew 11.3% to | 172.9 crore vs. | 155.3 crore in Q1. Staff costs as a
percentage of revenues were 66.1% vs. 74.3% in Q1, an improvement of
8.2% percentage points (pps) sequentially led by continued costs
rationalisation. A stable operational performance helped Mastek return to
EBITDA positive, a first after five quarters. At | 2.97 crore, EBITDA
adjusted for forex gains of | 0.45 crore was also higher relative to our | 5
crore loss estimate. Reported quarterly loss of | 1.5 crore was higher than
our | 6.1 crore loss estimate, however, adjusted PAT could have been |
9.5 crore excluding the | 11.5 crore product cost & forex gains.
ƒ Q2FY12 earnings summary: revenue/EPS beat
Mastek reported Q2FY12 revenues of | 172.9 crore ahead of our
| 167.3 crore estimate and net loss of | 1.5 crore vs. our | 6.1 crore
loss estimate. Revenues grew 11.3% QoQ while EBITDA margins
came in at 2% vs. our -3.0% estimate.
ƒ Operating metric highlights
Mastek added four new clients in Q2FY12 taking the active client
base to 93 vs. 91 in Q1FY12. Onsite utilisation was flat QoQ at 93.1%
while offshore utilisation improved 5.9 pps to 89.3% vs. 83.4% in
Q1FY12. Government and insurance vertical revenues grew 7.4%
and 12.3% QoQ, respectively, whereas other financial services and
IT & other services grew 13.4% and 14.9% QoQ, respectively.
Development revenues grew 15.6% QoQ whereas maintenance
grew by 3.9% QoQ in Q2FY12.
V a l u a t i o n
Mastek reported a good set of numbers this quarter. The operational
performance improved this quarter with offshore utilisation increasing
590 bps to 89.3% from 83.4% in Q1. Excluding product costs, the
company could have reported PAT of | 9.5 crore. That said, we maintain
our HOLD rating and | 90 price target, as an upgrade necessitates
sustainable revenue growth and operational performance
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
E n c o u r a g i n g q u a r t e r …
Mastek reported its Q2FY12 revenue and earnings, which were above our
estimates. Constant currency revenues grew 2.6% while rupee rupees
grew 11.3% to | 172.9 crore vs. | 155.3 crore in Q1. Staff costs as a
percentage of revenues were 66.1% vs. 74.3% in Q1, an improvement of
8.2% percentage points (pps) sequentially led by continued costs
rationalisation. A stable operational performance helped Mastek return to
EBITDA positive, a first after five quarters. At | 2.97 crore, EBITDA
adjusted for forex gains of | 0.45 crore was also higher relative to our | 5
crore loss estimate. Reported quarterly loss of | 1.5 crore was higher than
our | 6.1 crore loss estimate, however, adjusted PAT could have been |
9.5 crore excluding the | 11.5 crore product cost & forex gains.
ƒ Q2FY12 earnings summary: revenue/EPS beat
Mastek reported Q2FY12 revenues of | 172.9 crore ahead of our
| 167.3 crore estimate and net loss of | 1.5 crore vs. our | 6.1 crore
loss estimate. Revenues grew 11.3% QoQ while EBITDA margins
came in at 2% vs. our -3.0% estimate.
ƒ Operating metric highlights
Mastek added four new clients in Q2FY12 taking the active client
base to 93 vs. 91 in Q1FY12. Onsite utilisation was flat QoQ at 93.1%
while offshore utilisation improved 5.9 pps to 89.3% vs. 83.4% in
Q1FY12. Government and insurance vertical revenues grew 7.4%
and 12.3% QoQ, respectively, whereas other financial services and
IT & other services grew 13.4% and 14.9% QoQ, respectively.
Development revenues grew 15.6% QoQ whereas maintenance
grew by 3.9% QoQ in Q2FY12.
V a l u a t i o n
Mastek reported a good set of numbers this quarter. The operational
performance improved this quarter with offshore utilisation increasing
590 bps to 89.3% from 83.4% in Q1. Excluding product costs, the
company could have reported PAT of | 9.5 crore. That said, we maintain
our HOLD rating and | 90 price target, as an upgrade necessitates
sustainable revenue growth and operational performance
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