45. Mastek: Transitive Lull

DQI Bureau
New Update

In January this year, Mastek became the first Indian company to issue a profit warning for the JFM quarter. It later announced a profit of Rs 11 lakh for the quarter, on revenues of Rs 60

crore. As for 2000-01, Mastek earned revenues of Rs 261 crore, registering a growth of just 5% over Rs 247 crore in 1999-00. The performance was attributed to a shift in thrust–from consulting to the outsourcing business.


Domestic earnings fell from Rs 6.1 crore to Rs 4.7

crore. The United States remained the most favored destination, accounting for 49% of software exports revenues, but Europe caught up, with 44%. The company also made inroads in the Japanese market, which contributed 1% to the export revenue.

The company has put in place a six-pronged strategy for expansion–an increase in offshore outsourcing, focus on high-growth markets, geographic expansion, acquisitions in the US and Europe, alliance and joint ventures, and moving up the value chain. Mastek also got assessed at the SEI-CMM Level 5 and

P-CMM Level 3. 

  • Fical 2000-01’s growth of 5% was in stark contrast to 84% in the preceding fiscal
  • Company had issued a profit warning in January itself, much before any other company predicted the slowdown
  • Company was assessed at SEI-CMM Level 5 and P-CMM Level 3 , 44% of revenues from Europe
CMD: Ashank Desai START-UP YEAR: 1982 PRODUCTS & SERVICES: Software consultancy, turnkey projects

EMPLOYEES: 1,076 BRANCH OFFICES: 15 ADDRESS: Unit No 106, SDF IV, SEEPZ, Andheri (E), Mumbai 400096

TEL: 8290635, 8247999 FAX: 8290557 WEBSITE: