Mastek (MASTEK) Q4 99/00 earnings summary

Executive summary

• FY 2000 consolidated revenue rose 53% YoY to Rs 2,537m; net profit increased 205% to Rs 299m, despite a Q4 reduction in business from a major US client.

• International operations generated 98% of group income; front-end solutions, including eCRM, contributed 46% of revenue.

Financial highlights

• Consolidated PBT was Rs 335m versus Rs 122m; PAT was Rs 299m versus Rs 99m. US GAAP net income was $6.825m on revenue of $57.957m.

• Standalone revenue grew 66% to Rs 963m and PBT rose to Rs 294m from Rs 83m; exports increased 75% to Rs 877m.

• Operating cash flow was Rs 528m consolidated and $11.222m under US GAAP; year-end US GAAP cash and equivalents were $4.734m.

Outlook and guidance

• Management expected normal growth levels to resume after December 2000 following the major-client reduction, and expressed confidence in sustaining performance, barring unforeseen circumstances.

• Front-end solutions, eCRM and eServices were identified as growth drivers; CMM Level 5 practices were targeted by October 2000.

• Offshore development capacity of 140,000 sq. ft. at Millennium Business Park was under development and expected to begin operating in FY 2000-01.