IT stock ended on a red note as PAT drops 20% in Q3, 140% dividend declared

The stock ended today on a red note after the company reported a 19.56% YoY decline in its consolidated net profit to ₹67.12 crore for the quarter ended December 31, 2022 or Q3FY23 compared to a PAT of ₹83.45 crore in the same quarter of the previous fiscal year. In comparison to the ₹551.91 crore reported in Q3FY22, the firm generated net sales of ₹658.66 crore in Q3FY23, reflecting a YoY rise of 19.34%. Operating EBITDA for the company reached ₹113.7 crore in Q3FY23, up 5.9 per cent QoQ but down 2.2% YoY. The company reported an EPS of ₹21.34 per share in Q3FY23 compared to ₹24.81 reported in the year-ago quarter.

Mastek said in a stock exchange filing that “The Board also approved an Interim Dividend for the Financial Year ending March 31, 2023, @ of Rs. 7.00 per Equity Share (i.e. 140% of the face value of Rs. 5.00 each), which will be paid to the eligible Shareholders within 30 days.” To ascertain the eligibility of shareholders for payment of interim dividend, the company has fixed Wednesday, February 1, 2023 as the record date.

“The Board of Directors has also approved providing the Corporate Guarantee of up to GBP 26.5 million (equivalent INR) to Bank, on behalf of its Wholly Owned Subsidiary to enable it to avail of the Credit facility as and when needed,” said the company.

Mastek also informed stock exchanges by saying that “the Board of Directors at its meeting held today, i.e. January 17, 2023, has considered and approved the allotment of 320,752 (three lakh twenty thousand seven hundred and fifty-two) Equity Shares having face value of Rs. 5 (Rupees Five) each fully paid up, at a price of Rs. 1,856 (Rupees one thousand eight hundred and fifty-six) per Equity Share including a premium of Rs. 1,851 (Rupees one thousand eight hundred and fifty-one) per share in dematerialised form as part consideration. Further, the Company is also in the process of discharging the balance consideration for the acquisition of 33,446 (thirty-three thousand four hundred and forty-six) CCPS of its Subsidiary, MESPL.”

The stock touched a 52-week-high of ₹3,413.10 on (04-Apr-2022) and a 52-week-low of ₹1,490.15 on (18-Nov-2022). For the quarter ended September or Q2FY23, the company posted a promoter shareholding of 37.28%, FIIs stake of 13.04%, DIIs stake of 3.73% and a public stake of 45.96%.