Mastek is in focus on reports suggesting that the company is looking into acquisitions going forward. Abhishek Singh, Group CFO of Mastek, in an interview with CNBC-TV18, discussed the same and the outlook for the financial year 2020.
When asked if Brexit was impacting their revenues since a large part of it comes from the UK, he said, “The work we do with UK government forms 35 percent of our revenues and it is varied across sectors from health services, to immigration, to defence, to ministry of justice, etc, which have disparate decision makers and these are mission critical projects for the UK government and so will maintain the trajectory.”
"Brexit has taken some speed of decision making but I see no cut in spending," he said, adding that there is some disturbance but no disruption. In fact, post-Brexit, he expects more work for IT services.
Talking about financials, he said the cash on books stood at Rs 200 crore. "The company has a stated objective of monetising non-core assets to beef up the war chest to bring in capabilities that are needed to augment the business," he added. "So the total of cash plus non-core assets would be around Rs 450 crore."
With regards to buyback, he said that is usually an option when there is no avenue to deploy but currently size is of importance to the company. “There are significant opportunities to deploy cash,” he added.