Mastek (MASTEK) Q4 98/99 earnings summary

Executive summary

• Consolidated revenue reached Rs. 1,660.8 million in FY1998-99, up 65% YoY; profit before tax was Rs. 121.5 million and profit after minority interest was Rs. 98.7 million.

• International operations generated 97% of consolidated income; US and European growth offset pressure in domestic and Asia-Pacific operations.

Financial highlights

• Standalone revenue was Rs. 580.4 million, up 57% YoY; profit before tax and after tax rose 196% to Rs. 83.3 million.

• Exports increased 75% to Rs. 500.6 million; standalone domestic revenue was Rs. 57.6 million.

• Consolidated expenses were Rs. 1,475.1 million, depreciation Rs. 44.3 million, interest and financial charges Rs. 19.9 million, and tax Rs. 22.1 million.

Outlook and guidance

• Focus remained on fast-growing US, European and Japanese markets; directors expected the subsidiary model to support sustained performance.

• US operations planned East Coast and Midwest offices; UK planned to expand market share and develop front-office CRM and eBusiness offerings.

• Asia-Pacific recovery was expected to take a couple of years; operations were being run with staffing aligned to the reduced revenue base.

• Y2K compliance was targeted for end-October 1999, with contingency plans and additional client-site resources for potential disruptions.