Mastek

The stock price of Mastek hit a new 52-week high yesterday, propelled by the Q3FY17 performance of the company. Though consolidated total revenue remained almost status quo at Rs.126 crore, a 18% (QoQ) drop in costs and tax write back helped it end the Q3 with a net profit at Rs.11 crore, up 37%.

Employee cost stands at 62% of total expenses and EBITDA for the quarter was at Rs.15.50 crore, up 12%. Margins improved from 10.7% to 12.1%.

The company’s UK operations reported a 2% drop in topline though EBIT rose 27% and that from other regions showed a 20% drop in revenue and there was a loss at EBIT level.

The company added 8 new clients in Q3 and total client count is at 87. Its 12-month order backlog was at Rs.227 crore,  a 3% rise sequentially. In terms of employee, it seems to have a small “cos cutting” as employee count at end of Q3 was at 1300 v/s 1317 at end of Q2. Billable utilization improved from 81.5% to 82.4%.