Mastek Results: Latest Quarterly Results & Analysis

Software & Services company Mastek announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Revenue from operations: Rs 779.7 crore, up 9.9% YoY.
• Operating EBITDA margin: 16.0%
• Net Profit Margin: 12.0%, improved by 178 basis points YoY.
• New clients added: 22
• Total active clients: 430

FY24 Financial Highlights:

• Total revenue from operations: Rs 3,054.8 crore, up 19.2% YoY.
• Attrition rate (last twelve months): 20.5%
• Total employee count (as of March 31, 2024): 5,539; Offshore employee count (based in India): 3,892
• The 12-month order backlog showed a significant QoQ growth of 4.9% in rupee terms and stood at Rs 2,168.4 crore (USD 260.0 million). 
• Mastek's Board of Directors proposed a final dividend of 240%, which translates to Rs 12 per share.

Commenting on the FY24 results, Hiral Chandrana, Chief Executive Officer, Mastek, said: "Q4FY24 revenue was below our expectations at USD 93.7mn, a marginal decline of 0.3% QoQ in dollar terms due to offshore movement of a large program, and impact of 2 clients in the US. However, we had our highest ever order book (OB) with some marquee annuity deal wins in US this quarter. FY24 was a transformational year for us, we are pleased to have delivered revenue growth of 15.8% YoY in dollar terms on a full year basis, with disciplined execution across all geographies. The demand for our Digital Engineering, Cloud and Data/Al services remains strong as reflected in our 12 month order backlog which grew 19.1% Y-o-Y in dollar terms and we are well-positioned to deliver robust growth in FY25."

Arun Agarwal, Chief Financial Officer, Mastek, said: "We reported Q4FY24 revenue of Rs 779.7 crore, a marginal decline of 0.6% Q-o-Q basis in Rs terms. However, we are confident to deliver industry-leading growth in FY25, with strong 12 month order backlog which stood at USD 260.0mn, reflecting a growth of 4.6% QoQ in dollar terms. Our operating cash flow consistently improved during the year with closing cash & cash equivalent standing at Rs 473.3 crore. In FY24, we delivered an operating EBITDA growth of 11.6% on YoY. While macro uncertainties and customer delays prevail, growth in our pipeline, key lead indicators, and strategic priorities positions us well to continue our growth journey in the coming quarters and years."

Result PDF

IT Consulting & Software company Mastek announced Q2FY24 results:

1. Financial Performance:
- Q2FY24 revenue at Rs 765.5 crore, up by 22.4% YoY
- Operating revenue up by 13.5% YoY in constant currency terms
- 12 months order backlog grew by 22.3% YoY in rupee terms

2. Operational Performance:
- Added 29 new clients in Q2FY24
- 12 months order backlog at Rs 1,861.8 crore (USD 224.2 million)
- Total active clients: 441
- Total employees: 5,598

3. Key Wins for the Quarter:
- Provided a single sign-on flagship digital program for the UK government
- Implemented Oracle cloud solutions in the healthcare industry
- Implemented ERP system for a US-based airport hospitality customer
- Delivered cloud solutions and implementation services for a European government organization
- Implemented Microsoft Dynamics 365 CRM for a leading bank in Southeast Asia
- Implemented Oracle ERP for a UK-based international ferry port

4. Acquisition Update:
- Mastek completed the acquisition of BizAnalytica, LLC in August 2023
- BizAnalytica brings data cloud and modernization expertise to Mastek

5. Strategic Priorities:
- Expanding presence in the Americas, specifically targeting healthcare, retail, and manufacturing sectors
- Continued growth in the UK public sector and expansion in Europe and the Middle East
- Differentiated talent and delivery model to attract and retain top talent
- Value-based delivery to drive business outcomes
- Strengthening strategic partnerships, particularly in the Oracle cloud
- Focus on innovation, intellectual property, and ESG (Environment, Social, and Governance)

Commenting on the Q2FY24 results, Hiral Chandrana, Chief Executive Officer, Mastek, said, “We are glad to report revenue growth of 13.5% YoY in constant currency fueled by organic growth in the US and demand for digital & cloud services. Our 12-month order backlog was USD 224.2 million, a growth of 19.8% Y-o-Y in dollar terms, with a robust Order Book from the UK. Mastek was recognized by Everest Group as Top 5 Global SI’s in Oracle Cloud Applications. We rewarded employees for their contributions and have implemented companywide salary increments during the quarter. We successfully completed the acquisition of BizAnalytica, accelerating our presence in Data Cloud and the fast-evolving Generative AI space.”

Arun Agarwal, Chief Financial Officer, Mastek, said, “We reported revenue of Rs 766 crore for the quarter, a growth of 4.4% on a QoQ basis in constant currency driven by momentum in our existing business and integration of BizAnalytica. Despite challenges such as delayed deal closures, we were able to maintain a growth trajectory in the order book. We delivered an operating EBITDA margin of 16.1% in Q2FY24 after incorporating salary hikes across the organization. We are cautious about prevailing macroeconomic conditions, however, our resilient business model, strong pipeline, and improved utilization are encouraging as we execute in H2FY24.”

Result PDF

IT Consulting & Software company Mastek announced Q1FY24 results:

• Revenue at Rs 725.3 crore in Q1FY24 compared to Rs 570.3 crore in Q1FY23, up by 27.2% YoY
• Signed definitive agreement to acquire BizAnalytica, LLC - a data cloud & modernization specialist
• 12 months order backlog grew by 16.9% YoY
• Opearting EBITDA of Rs 127 crore in Q1FY24 compared to Rs 109.2 crore in Q1FY23, up 16.3% YoY
• Operating EBITDA at 17.5% of revenue
• Net Profit of Rs 73.5 crore in Q1FY24 compared to Rs 84.4 crore in Q1FY23, down 12.8% YoY
• Dituted EPS of Rs 22.7 in Q1FY24 compared to Rs 25.1 in Q1FY23

Commenting on the Q1FY24 results, Hiral Chandrana, Chief Executive Officer, Mastek, said: “We reported revenue growth of 20.2% YoY in constant currency driven by demand for Digital Engineering, Experience, and Cloud Transformation services and disciplined execution. Despite macroeconomic challenges, we maintained growth momentum and deeper engagement with our strategic clients. We are excited about opportunities in Data Cloud and Generative AI space and pleased to welcome the BizAnalytica team to the Mastek family. We are thankful to our customers, employees, and shareholders for their continued trust in Mastek.”

Arun Agarwal, Chief Financial Officer, Mastek, said: “Despite uncertain market conditions, we continued to demonstrate resilience and adaptability, maintaining stable growth and margins. During the quarter, we reported revenue of Rs 725.3 crore, a growth of 2.3% QoQ in reported currency. We continued to prioritize financial discipline and operational efficiency to drive sustainable growth, resulting in an operating EBITDA margin of 17.5%. Mastek’s capability in data cloud has been strengthened with the acquisition of BizAnalytica, and we are optimistic about our prospects to drive shareholder value for the remaining FY24 and beyond.”

Result PDF

IT consulting & software company Mastek announced Q4FY23 results:

• Revenue at Rs 709 crore, up by 22.0% YoY
• Operating revenue is up by 7.7% QoQ in rupee terms
• PAT at Rs 72.6 crore; up 8.2% QoQ
• 12 months order backlog grew by 22.1% YoY
• Proposed final dividend of 240%

Commenting on the FY23 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: “We are pleased to report a sequential revenue growth of 7.8% QoQ in USD, and 5.3% QoQ in constant currency in Q4, fueled by strong in-quarter execution and demand for digital engineering, experience, and cloud transformation services. Despite macro uncertainty, our pipeline and order backlog across markets continues to grow, account mining is yielding results, and we added 28 new clients in the quarter. We were able to further reduce our attrition to 21.0% on an LTM basis, a 700 bps reduction from a year ago. We are thankful to our customers and employees for their continued trust & commitment to Mastek.”

Arun Agarwal, Global Chief Financial Officer, Mastek, said: “We are glad to conclude FY23 with revenue growth of 18.5% YoY in constant currency and continued positive deal momentum. For the full year FY23, we were able to maintain an operating EBITDA margin of 17.8% driven by our cost-optimization focus while funding for the growth. Our 12-month order backlog stood at Rs 1,794 crore, an increase of 17.2% on YoY in constant currency. We are confident that efforts to strengthen our leadership team, disciplined execution and strategic priorities, position us well to navigate successfully through the current macroeconomic environment.”

Result PDF

IT Software & Service company Mastek announced Q3FY23 results:

• Q3FY23:
  • Revenue at Rs 658.7 crore, up by 20.0% YoY basis (CC)
  • Operating revenue up by 5.3% QoQ basis in rupee terms
  • 12 months order backlog grew by 34.2% YoY in rupee terms
  • Added 31 new clients in the quarter
  • Recommends interim dividend of 140%

Commenting on the Q3FY23 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: “At a group level we delivered revenue growth of 3.1% on quarter-on-quarter basis and 20.0% on year-on-year basis in constant currency. Acquisition of MST Solutions, a Summit level Salesforce partner has delivered above expectations, and our Top 40 accounts continue to grow across the digital engineering & cloud transformation portfolio. Our overall organic business did not perform as expected impacted by furloughs and seasonality. We made a strategic minority investment in Volteo Edge – an IoT platform that leverages ServiceNow in the Connected Enterprise & Data ecosystem. Our focus on people is showing results, attrition has been trending down last 3 quarters. We thank all our stakeholders for their commitment to Mastek.”

Arun Agarwal, Global Chief Financial Officer, Mastek, said: “Despite seasonally weak quarter and uncertain macro environment, we reported revenue growth of 5.3% QoQ and 19.3% on year-on-year basis in INR terms. Our cost-optimization strategies helped us to maintain an operating EBITDA margin of 17.3%. Our 12-months order backlog grew by 29.7% on year-on-year basis in constant currency. We added 31 new customers driven by continuous demand for digital engineering and cloud transformation services. Our Board of Directors have proposed an interim dividend of 140% or Rs 7 per share. We are optimistic that our disciplined execution and strategic priorities position us well to deliver industry-leading growth in coming quarters and years.”

Result PDF

IT Consulting & Software firm Mastek Announced Q1FY23 Result :

• Q1FY23 revenue grew 13.4% on YoY basis in Constant Currency
• Q1FY23 Revenue grew to Rs 570.3 crores; up by 10.4% YoY
• 12 months order backlog grew by 28.2% YoY in rupee terms
• Added 33 new clients in the quarter
• Mastek acquires MST Solutions, a leader in Salesforce ecosystem

Commenting on the Q1FY23 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: “We reported constant currency revenue growth of 13.4% on year-on-year basis and continued to deliver business outcomes for our clients across digital engineering and cloud transformation engagements. It was a challenging quarter impacted by pause of a key program in a large account, currency impact, slower than expected ramp ups and delayed decision making on few deals. Having said that, our pipeline has grown, win ratios have improved, our focus on account mining and annuity business is yielding results. In line with our Vision 2025, we have acquired MST Solutions, a Summit level Salesforce Consulting partner with strong presence in Americas and marquee Fortune 1000 clients. We welcome the MST Solutions team to our family. We are confident about the fundamentals of our strategy and committed to driving differentiated growth as we continue to partner with clients to Decomplex Digital with Trust, Value and Velocity.”

Arun Agarwal, Global Chief Financial Officer, Mastek, said: “We reported operating margin of 19.2% during the quarter despite currency impact, continued investments and increase in hiring costs. We have undertaken several appropriate steps to scale supply and talent acquisition, the results of which would start reflecting in the coming quarters. Resilience of our business is demonstrated in 12-month order backlog of US$ 191 mn as of 30th June, 2022 which grew by 31% Y-o-Y in constant currency. Acquisition of MST Solutions further enhances our integrated offerings across Digital Experience and transformation and strengthens our presence in US geography. Demand environment continues to be strong, and we are confident that our strategic priorities and execution rigor positions us well to achieve our Vision 2025.”

Result PDF

Mastek, Q4FY22 revenue rises 18.3% YoY to $77.2 million

Mastek IT Consulting & Software firm declares Q4FY22 result:

• FY22 Revenue at Rs 2,184 crores; up by 26.8% YoY
• FY22 PAT at Rs 333.4 crores; up by 32.4% YoY basis
• 12 months order backlog grew by 30.0% YoY
• Recommends Final Dividend of 240%
• In USD:
  • Revenue was US$77.2 mn (CC growth: 5.3% QoQ / 18.3% YoY)
  • Net profit was US$11.7 mn (growth of 5.4% QoQ / 13.6% YoY)
• In INR:
  • Revenue was Rs 581.5 crores (growth of 5.4% QoQ / 20.3% YoY)
  • Net profit was Rs 88.2 crores (growth of 5.7% QoQ/ 16.5% YoY)

Commenting on the FY22 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: “We are pleased to report another robust quarter and financial year driven by our continuous focus on digital engineering & cloud transformation services. Our strong performance is demonstrated in FY22 by revenue growth of 26.8% and an annual EBITDA Margin of 21.2%. Mastek’s ability to execute business process transformation services and our differentiation in Oracle Cloud has helped us win some large deals and grow accounts during the year. We are witnessing strong demand acceleration as reflected in our record 12 months order backlog of US$ 193.8 mn as of March 2022. Mastek is uniquely positioned to be the business solutions provider of choice as we partner with our clients to decomplex digital with trust, value and velocity.”

Arun Agarwal, Global Chief Financial Officer, Mastek, said: “We are happy with our overall fiscal year 2022 performance, including revenue growth, margins, profitability and robust order backlog. Q4FY22 was another quarter of consistent financial performance with revenue growth of 5.4% sequentially. The Board recommended a final dividend of Rs 12/- per share taking the total dividend payout for the year to 380%. As we enter our next phase of growth, we are confident that increased demand for digital engineering & cloud transformation services, our next-gen capabilities coupled with strategic investments, position us well to sustain the growth momentum, create value for our customers and maximize value for our shareholders.”

Result PDF

IT Consulting & Software company Mastek declares Q3FY22 result: 

• Q3FY22 revenue at Rs 551.9 crores; up by 24.6% YoY basis
• 9MFY22 operating revenue up by 29.4% YoY
• Q3FY22 PAT grew 18.7% YoY
• 12 months order backlog grew by 34.3% YoY
• Added 25 new clients in the quarter

Commenting on the Q3Y22 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: “We have delivered consistent revenue and order book growth with robust performance across geographies in Q3FY22. Our account mining and integrated solutioning efforts have led to revenue growth in our strategic bets including Health and Life Sciences and our Data/ Automation & Oracle Cloud services. We had strong deal momentum which is reflected in our 12 months order backlog of US$171 mn end of December 2021. As part of our Strategic Vision 2025 that will drive accelerated growth over the next 3 years, we have onboarded 2 new global executives, one to lead Marketing & Partnerships and another for Innovation & Platforms as we continue to deliver differentiated business value for our clients across digital & cloud programs.”

Arun Agarwal, Global Chief Financial Officer, Mastek, said: “Q3FY22 is another quarter where we demonstrated resilience of our business and delivered a strong financial performance. We reported operating revenue of Rs 551.9 crores, a growth of 24.6% on Y-o-Y basis, reinforcing the strong fundamentals of our business in a seasonally week quarter. Despite industry wide challenges driven by high attrition, investment in talent retention and lateral hires, we have been able to maintain healthy operating EBITDA margin at 21.1%. I am pleased with increasing average deal size in the UK and other geographies. We are confident that our next-gen capabilities, sectoral expertise and client mining strategy are well placed to ensure the velocity at which we grow, add value to our customers and maximize value for our shareholders.”

Result PDF

Highlights:

• Q2FY22 revenue at Rs 533.9 crore; up by 30.3% Y-o-Y basis
• EBITDA Margin at 21.1% for Q2FY22
• PAT grew 37.8% Y-o-Y
• 12 month order backlog grew 22.7% Y-o-Y
•  Added 45 new clients in the quarter

Commenting on the Q2FY22 results, Hiral Chandrana, Global Chief Executive Officer, Mastek Group, said: “We continue to demonstrate sustained growth across geographies and industry sectors. I am pleased with our expansion in Fortune 1000 clients in Americas and increasing deal sizes in our pipeline. As an organization, we have made progress on our Vision 2025, strategic priorities and big bets that will drive accelerated growth in digital & cloud services over the next 3 years. We will continue to invest on our talent and our Mastekeer experience. As we shape the future in partnership with our clients, we will stay focused on delivering business outcomes & solutions, living the trust with stakeholders and innovating with disruptive technologies to drive time to value.”

Arun Agarwal, Global Chief Financial Officer, Mastek Limited, said: “Q2FY22 has been another quarter of consistent financial performance. We reported Rs 533.9 crore revenue, reflecting a growth of 30.3% on Y-o-Y basis, demonstrating the strong fundamentals of our business. Despite increase in costs due to salary hikes and investments in sales & marketing, we have been able to maintain healthy operating EBITDA margin at 21.1%. We are confident that with refreshed focus towards new age practices and strategic investments, we are well placed to sustain the growth momentum, create values for our customers and maximize value for our shareholders.”

Result PDF