Midcap IT firm Mastek fell over 2 percent on January 17 after the company posted 19.2 percent year-on-year decline in its December quarter profit at Rs 67 crore.
Consolidated net profit stood at Rs 83 crore in the year-ago period. Sequentially, the company's net profit fell 22 percent from Rs 86 crore in Q2 FY23.
At 2:05 pm, the stock was quoting at Rs 1,678 apiece on the National Stock Exchange, lower by 3.23 percent. The stock has lost close to 50 percent in the past one year.
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Revenue from operations grew 5.3 percent to Rs 658.6 crore as against Rs 625.3 crore in the last quarter. EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 5.9 percent QoQ to Rs 113.7 crore.
“Out top 40 accounts continue to grow across the digital engineering and cloud transformation portfolio. Overall organic business did not perform as expected impacted by furloughs and seasonality. We made a strategic minority investment in Volteo Edge – an IoT platform that leverages ServiceNow in the connected enterprise & data ecosystem," Hiral Chandrana, global chief executive officer at Mastek said.
The company added 31 new clients in Q3 FY23 and a total of 5,687 employees. 12 months order backlog stood at Rs 1,705.8 crore ($206.2 mn) as on 31st December, 2022.
The board approved an interim dividend of Rs 7 per share for the financial tear ending 31 March, 2023.
Foreign brokerage firm Macquarie has an 'Outperform' rating on the stock with a target price of Rs 2,720, indicating a 61 percent upside from the current level.
"We expect a turnaround in UK Government and NHS deals, and expect recent transformational M&A (mergers and acquisitions) to broaden growth drivers and improve client mining," it noted.
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