Share Market News: Mastek Shares Surge Over 12% Despite Slow Growth, Know Key Factors

Share Market: Despite a generally disappointing result in the IT industry, Mastek’s shares rose by 12-13% today. While Mastek’s quarterly results were in line with weak expectations, the company’s net profit increased by 13.5% sequentially, owing mostly to a significant increase in other income. The stock performed well due to the company’s strong financial position and cash reserve of around Rs 549 Cr.

UK Market Led The Growth

The strong gain in revenue from the UK market, which accounts for roughly 64% of Mastek’s total revenue, has contributed significantly to investor optimism. In the June quarter alone, UK revenues increased 9.6% sequentially. Furthermore, order wins have been strong, at 2.5% quarter on quarter and 8.3% year on year. The upcoming India-UK Free Trade Agreement is also boosting market sentiment, since it is likely to benefit Indian companies with significant UK exposure, such as Mastek, supporting the strong gain in its stock price.