Mastek Ltd has posted a 37.5 per cent drop in its consolidated net profit to Rs 10.02 crore (Rs 100.2 million) for the third quarter ended March 2004 as compared to Rs 16.03 crore (Rs 160.3 million) recorded in the same period of the previous year.
The IT company said it was likely to be "short of the annual targets".
The total income for the reporting quarter grew marginally to Rs 105.26 crore (Rs 1,052.6 million) as against Rs 99.06 crore (Rs 990.6 million) in Jaunary-March 2003, according to a company release.
Mastek chief executive officer Sudhakar Ram was quoted as saying the performance has been better in the quarter. "Some of the delayed projects are on track, although the company is likely to be short of its annual targets," he added.
The US operations registered a three per cent growth while those in the Europe and Asia-Pacific region declined by 10 per cent each, the release said.
The net profit and total income for the nine months ended March 2004 stood at Rs 17.15 crore (Rs 171.5 million) [Rs 47.53 crore (Rs 475.3 million) in July 2002-March 2003] and Rs 292.17 crore (Rs 2,921.7 million) [Rs 288.11 crore (Rs 2,881.1 million) respectively, it said.
The company has sold its 60 per cent stake amounting to Rs 36 crore (Rs 360 million) in Mastek BPO Ltd, a wholly owned subsidiary, to Capita International Ltd, for a consideration of Rs 21.3 crore (Rs 213 million). The company has received necessary approvals from regulatory authorities for such sale.
The book value of this investment had diminished to Rs 1.47 crore (Rs 14.7 million) due to accumulated losses till the date of sale.
The company expects its group investments to increase by two per cent to five per cent for the fourth quarter.
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