Mastek Q4 net up 23.11 pc, final dividend at Rs 3.50 per share

Mumbai, July 24 (UNI) Mastek has posted a net profit of Rs 15.55 crore for the quarter ended June 30, 2006, as compared to Rs 12.63 crore for the quarter ended June 30, 2005, an increase of 23.11 per cent.

The company said its total income has increased from Rs 85.63 crore in quarter ended June 30, 2005, to Rs 118.05 crore for quarter ended June 30, 2006.

It has posted a net profit of Rs 49.26 crore for the year ended June 30, 2006, where as the same was at Rs 47.37 crore for the year ended June 30, 2005. Total Income is Rs 401.44 crore for the year ended June 30, 2006, where as the same was at Rs 263.63 crore for the year ended June 30, 2005.

The figures for the year ended on June 30, 2006, are not comparable with the corresponding previous year figures since with effect from January 01, 2005, the company has changed its Business model for the UK Operations. The company started executing on-site projects in the UK which were earlier executed through its subsidiary. The revenue earned and cost incurred by the company for executing such project is included in the results of the current year as against the numbers for only two quarters during corresponding previous year.

The Board of Directors has recommended a final dividend of Rs 3.50 per share (70 per cent on par value of Rs 5 per share, after 1:1 bonus), subject to the approval of shareholders in the Annual General Meeting. Including the interim dividend of Rs three per share (60 per cent on par value of Rs five per share), the total dividend recommended for the year is Rs 6.50 per share (120 per cent on par value of Rs 5 per share). This is equivalent to 200 per cent on the pre bonus shares, as against 150 per cent for the year ended June 2005.

Commenting on the performance and business outlook the company's Chief Executive Officer Sudhakar Ram said, ''In the last year, we made significant progress on three fronts in establishing our position as a leading solutions provider for the insurance industry - in delivering sustained value to all our strategic clients and growing these accounts significantly and in building up a good pipeline in the two major verticals that We are focused on - insurance and e-government.'' Despite shortfalls overall in new account acquisition and growth rate, it is encouraging to note that we added three Top twenty Strategic Accounts in Insurance space and our Insurance business grew at 43 per cent annually, he added.

UNI SN MJ AW1658