Mastek

The stock had hit a new 52-week high yesterday after its US insurance subsidiary, Majesco got listed on the BSE and NSE. Expectations were that Majesco would get listed at around Rs.320-350 and it got listed much below that. Thus disappointed, punters booked gains and the stock, on the first day of its trading, ended in the red, down 4.5%.

The financial performance of Mastek was also not too enthusing for Q1Fy16. Total income was at Rs.139 crore, down 50% (QoQ). EBITDA was at Rs.17 crore, down 13%. It ended the quarter with a net profit of Rs.4 crore, down 31%. 59% of the company’s revenue comes from Govt (UK) and of the total revenue, 43% is from fixed price and 53% based on time and material. And in Q1, performance was impacted due to UK elections. Going ahead, the company expects Q2 to be also be muted and estimates that real recovery will begin from second half of FY16.  

As at 30th June 2015, the total cash/cash equivalent stood at Rs.156 crore and this includes investment of Rs.19 crore in Majesco USA. Employee headcount is at 1349.