The Telegraph
Since 1st March, 1999
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UK firm to pick up 60% in Mastek BPO

Mumbai, Nov. 10: The UK-based support services firm Capita Group Plc will acquire a 60 per cent stake in Mastek BPO Ltd, a wholly-owned subsidiary of application software major Mastek Ltd, for Rs 2.14 crore.

The acquisition is under a new business process outsourcing (BPO) joint venture formed between the two firms, which is an extension of an earlier pact signed in 1995.

Mastek BPO will be renamed as Capita Mastek BPO Ltd and continue to operate from its Thane office. The new company will function as a BPO delivery unit for both Capita and Mastek, focusing on back-office transaction processing.

However, the acquisition is subject to regulatory approvals from the Foreign Investment Promotion Board (FIPB) and the Reserve Bank of India (RBI).

For the first quarter ended September 30, Mastek Ltd had posted a lower net profit at Rs 3.03 crore compared with Rs 15.25 crore registered during the same period of the previous fiscal. The company’s total income fell to Rs 91.39 crore during the quarter under review as against Rs 91.63 crore posted during the same period a year ago.

On a standalone basis the software major posted a net loss of Rs 92 lakh in the reporting quarter as against a net profit of Rs 10.2 crore posted during the corresponding previous period.

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