Mastek posts losses again
Ahmedabad-headquartered mid tier IT services company Mastek reported a consolidated loss for a second straight quarter raising concerns of survival of mid-tier companies in an increasingly competitive environment.
By ET Bureau |
BANGALORE: Ahmedabad-headquartered mid tier IT services company Mastek reported a consolidated loss for a second straight quarter raising concerns of survival of mid-tier companies in an increasingly competitive environment.
On Tuesday, the company reported a Rs 27.66-crore loss for the quarter ended December 31, 2010. The company attributed its poor performance to dip in development revenues from overseas clients, IP investments and goodwill imparement.
During the quarter ending December, the company's post-tax earnings were impacted by higher depreciation of Rs 2.4 crore at one of its facilities and impairment of goodwill amounting to Rs 20.7 crore of Vector Insurance Services, which the company acquired in July 2007.
Goodwill impairment happens when the value of the goodwill of a business declines to an amount less than the carrying value of the goodwill on the company's books.
On Tuesday, the company reported a Rs 27.66-crore loss for the quarter ended December 31, 2010. The company attributed its poor performance to dip in development revenues from overseas clients, IP investments and goodwill imparement.
During the quarter ending December, the company's post-tax earnings were impacted by higher depreciation of Rs 2.4 crore at one of its facilities and impairment of goodwill amounting to Rs 20.7 crore of Vector Insurance Services, which the company acquired in July 2007.
Goodwill impairment happens when the value of the goodwill of a business declines to an amount less than the carrying value of the goodwill on the company's books.
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