Mastek
The stock yesterday, hit a new 52-week high on news that its Board of Directors will meet on 8th Jan’14 to consider a proposal of buyback of equity shares of the company. As at 30th Sept 2013, promoters stake stands at 46.70%, FIIs hold 16.14%, DIIs hold 7.65% and the rest, 29.51% is public float. Naturally, the expectation is that the buyback price would be a substantial premium over the market price and that is driving up the stock price now.
The company had posted a good set of numbers for Q2Fy14. Its net profit, sequentially, rose 113 % at Rs.15 crore. Its perating revenue was Rs 237 crore v/s Rs. 222.3 crore during the sequential previous quarter reflecting an increase of 6.5% in rupee terms and down 0.8% in constant currency terms. EBITDA came in very healthy at Rs 28.9 crore (12.1% of total income) compared to Rs 18.6 crore (8.2% of total income) in Q1FY14. EBIDTA margins improved by a robust 393 bps to 12.1%.
The Company added 4 new clients during Q2FY14 and total client count as at 30th September, 2013 was 121 (LTM). Mastek’s 12-month order backlog was Rs 558 crore ($ 89.1mn) as on 30th September 2013 and in constant currency stood at Rs 518.3 crore ($87.4 mn) as compared to Rs 560 crore ($ 94.5mn) at the end of Q1FY14, reflecting a drop of 0.4% QoQ in rupee terms (drop of 7.4% QoQ in constant currency). Its total employee count was at 3185 in Q2 v/s 3,271 in Q1. Its billable utilization stood at 81.5% during the quarter under review as compared to 80.0% in Q1FY14.