Q2FY25 revenue at Rs 867 crore, up by 6.7% Q-o-Q

 

• Revenue up by 13.3% Y-o-Y
•  Operating EBITDA margin at 16.5%, up 125bps Q-o-Q
•  12 months order backlog grew by 17.9% Y-o-Y

Mumbai, India 18th October 2024: Mastek, a Turnkey & Trusted Digital Engineering & Cloud Transformation Partner, announced today its financial results for the Second quarter and Half year of FY25 ended on 30th September 2024.

Commenting on the Q2FY25 results, Umang Nahata, Chief Executive Officer, Mastek, said: “We are pleased to report another strong quarter with revenue growth of 6.7% Q-o-Q. I am delighted to report QoQ growth of 18% in North Americas led by strong performance across sectors. Our UK & Europe business continues to deliver steady growth backed by momentum in Healthcare portfolio. We continue to focus on our strategic priorities while taking a sharp AI-first approach across all operations, enhancing our delivery capabilities, and developing innovative AI-driven solutions. I remain committed to Mastek’s continued growth driven by our strategic growth pillars.”

Arun Agarwal, Chief Financial Officer, Mastek, said: “We are pleased to deliver strong financial performance with revenue of Rs 867 crore, a growth of 13.3% on Y-o-Y basis. We reported operating EBITDA margin of 16.5%, reflecting improvement of 125 bps QoQ after incorporating partial wage hikes in the quarter. Despite ongoing geopolitical developments, our deal pipeline continues to remain strong, with an order backlog of Rs 2,195 crore, a growth of 17.9% on Y-o-Y basis. We are confident in our ability to sustain healthy topline growth and profitability in the coming quarters.”

Operating Highlights:

• New accounts added during the quarter: The Company added 14 new clients in Q2FY25. Total active clients during Q2FY25 was 380 as compared to 391 in Q1FY25 reflecting deeper account mining and higher revenue per account.
• 12 months Order Backlog: 12 months order backlog was Rs 2,194.7 crore ($261.9 mn) as on 30th September, 2024 as compared to Rs 1,861.8 crore ($224.2 mn) in Q2FY24, reflecting growth of 17.9% in rupee terms and 10.9% in constant currency terms on Y-o-Y basis.
• Employees: As on 30th September, 2024, the company had a total of 5,505 employees, of which 3,821 employees were based offshore in India while the rest were at various onsite locations. Employee count at the end of 30th June, 2024 was 5,546. Last twelve months attrition at 20.1% in Q2FY25 in comparison with 20.9% in Q1FY25.
• Cash Balance: The total cash, cash equivalents and fair value of Mutual Funds stood at Rs 390.5 crore as on 30th September, 2024 as compared to Rs 383.5 crore as on 30th June, 2024.

Key wins for the Quarter:

•  Mastek will deliver 24×7 Live Service support for a Critical National Infrastructure (CNI) system for a leading UK authority, pivotal to maintaining the smooth flow of goods and services across UK borders. This support ensures the uninterrupted operation of a system vital to the nation’s international trade, safeguarding the seamless movement of imports and exports essential to the UK economy’s growth and resilience.
• Mastek has been selected by a US-based provider of global study abroad programs to implement Salesforce and oversee data migration, optimizing operational efficiency by eliminating redundant processes and systems. This partnership will enable the client to streamline their financial operations, enhance data integrity, and better manage their global programs.
• Mastek has been engaged by a US based global investment platform to provide specialized IT personnel to enhance their Investment Data Management Program. We will implement a Unified Data Platform and Model using Snowflake, modernizing processes to accelerate time to market, improve reporting and dashboard capabilities, and reduce total cost of ownership (TCO), driving operational efficiency and competitiveness.
• Mastek will partner with a UK-based national health provider to develop digital products that enhance disease monitoring and prevention. Our solutions will optimize the use of national data across platforms and systems, transforming operational efficiency, improving decision-making capabilities, and supporting the Government’s health agenda.
• Mastek is partnering with a US-based innovative not-for-profit healthcare organization for the implementation and managed services of Oracle Cloud Enterprise Suite. This solution will streamline billing processes through integrated Claim and Membership systems, enhancing real-time visibility into financial analytics and driving operational efficiencies.
• Mastek has partnered with a renowned healthcare institution in the Middle East to re-engineer business processes and provide integration services for seamless data flow, data migration, and management with Oracle Cloud. This project will enhance data visibility, improve compliance, accelerate financial closing, and foster greater efficiency and collaboration.
•  Mastek has secured a multi-year agreement from a global provider of advanced energy solutions, for Oracle Cloud Enterprise Suite enhancement services, boosting operational efficiency for the client across multiple regions. This partnership delivers continuous support, flexible incident management, and predictable pricing, enabling scalable services and driving transformative digital outcomes for long-term business growth.
• Mastek, as a trusted partner, has secured a contract from a US-based cloud enabled and mobile solutions company, for Mulesoft integration with all critical applications, enhancing productivity and eliminating duplication for the client. This solution will transform the existing citizen portal, improve security, and enhance call center applications.
• Mastek to implement the Enterprise Workforce Scheduler for a Saudi Arabian construction company to enable effective tracking of operational activities, including employee movement, time management, scheduling, project costs, and reporting. This will streamline workforce activities and time tracking, providing real-time insights for improved decision-making for the client.

 

Key Achievements & Recognitions:

During the quarter, Mastek and its Subsidiaries received awards and recognitions conferred by reputable organizations. Some of them are:

• Everest Group: Mastek has been recognized as a Leader in Everest Group Digital Transformation Services for Midmarket Enterprises Peak Matrix 2024, and recognized as a Major Contender in several Peak Matrix – Digital Commerce, AWS Service Providers, Application Management Services.
• ISG Paragon Awards: Mastek won the 2024 ISG Paragon Awards in the ‘Excellence’ category for its partnership with The Vitamin Shoppe. Two case studies by Mastek have been recognized a ‘Standout’ in the ISG Digital Case Study Awards.
•  ISG: Mastek has been recognized as a Product Challenger in the ISG Generative AI Services 2024 Provider Lens report in two categories: Gen AI – Strategy and Consulting Services (Global), and Gen AI – Development and Deployment Services (Global).
• Forester: Mastek featured in Forrester’s The Oracle Services Landscape, which highlights 41 providers for implementing Oracle Cloud products, delivering continuous change management, supporting Oracle applications, and future-proofing enterprise business processes.
•  Stevie Awards: Mastek Founder & Chairman Ashank Desai honored with The Gold Stevie® Award 2024 at the International Business Awards®.

 

About Mastek

Mastek (NSE: MASTEK; BSE: 523704), is an enterprise digital and cloud transformation partner that engineers excellence for customers in industries such as healthcare and life sciences, retail and consumer, manufacturing, financial services, and the public sector, across 40 countries, including the UK, US, Europe, the Middle East, and Asia Pacific. Mastek helps enterprises decomplexify digital and delivers business outcomes with trust, value, and velocity across the spectrum of services including digital experience and engineering, cloud implementations, data, automation and AI, and cloud managed services. Mastek recently launched its GenAI enabled portfolio iConniX that offers over 120 AI assets, 4 AI platforms, and solution blueprints tailored to meet industry specific business use cases. A preferred Oracle, Salesforce, Microsoft, AWS, and Snowflake partner, Mastek has 6000+ employees and delivers the right-fit solutions to both medium businesses and global Fortune 1000 clients. For more details, please visit our  website www.mastek.com.

For past results & conference call transcripts, please visit our web site at https://www.mastek.com/investors/. Updated disclosures regarding corporate governance may also be accessed at https://www.mastek.com/investors-corporate-governance/.

Investor / Analyst contact:

Asha Gupta
Investor Relation Practice, E&Y LLP
[email protected]

Shareholders may also contact Mastek via email at [email protected], which has been specifically created for the redressal of investor grievances. You may also contact the Investor Relations team by email at [email protected]