Mastek bags large US, European clients

Mastek, leading domestic software service provider, has bagged orders from US and European insurance and government organisations, bolstering its order book Some of the orders include a $50m contract with Syntegra, a subsidiary of British Telecom and a deal with e-Policy Solutions, the US-based company that develops and licenses software products for casualty and property insurance industry.

According to analysts with Enam Securities, Mastek's earnings growth in FY2005 could be high at 60-80 per cent if its management's guidance comes through. Among its business, financial sector that include banking and insurance has shown rapid growth. Insurance practice has been fastest growing segment for Mastek. Banking and insurance accounts for 40 per cent revenues for Mastek, with several new client acquisitions in the past 18 months.

Its insurance clients increased from below five in FY2003 to over 10 in FY2004 (mainly in Europe and US). In FY2004, Mastek won a $7m from a UK-based insurance major. It is expected that insurance will be a major revenue driver in FY2005 for the company.

Mastek derived 55 per cent revenue from UK in FY04 as against less than 30 per cent for most Indian IT services exporters. In terms of revenues from Europe, Mastek ranks among top five Indian IT companies. Mastek's major clients in US include large corporations such as Capita group, Syntegra (BT group company), Lex Leasing Vehicles and a few insurance companies. Mastek has 24 clients that rank among Fortune Global 1,000 corporations.

The company expcts US revenue to grow at a higher pace over the next few quarters.

However, Mastek would continue to have high dependence on Europe, which will account for 50 per cent revenue in FY05.