Mastek Limited · NSE:MASTEK
Mastek — Q4 FY2021 Earnings Presentation
32 slides from Mastek's earnings presentation, Apr 28, 2021
Slide 1: 28 April 2021
28 April 2021 Presented by: Ashank Desai | Vice Chairman and Managing Director, Mastek Limited Abhishek Singh | President Designate, UK Business of Mastek Arun Agarwal | Group Vice President, Finance, Mastek Limited Umang Nahata | Co-founder, Evosys
Slide 2: Table of Contents
Table of Contents 01. Highlights of the Quarter 02. Financial Performance 03. Operational Performance 04. Key Wins for the Quarter 05. Evosys Advantage 06. Acquisition Updates Mastek Limited | Investor Presentation 2021 | Presentation title in footer 2
Slide 3: Highlights of the Quarter
Highlights 01 of the Quarter 02 03 04 05 06
Slide 4: Highlights of FY21
Highlights of FY21 Mastek crossed $230m revenue in Enrichment in Operating PAT grew by 121.2% YoY FY21 EBITDA margin of 667 bps YoY 60.7% YoY 21.2% Operating FY 14.4% PAT margin, FY 21 revenue growth 21 416 bps EBITDA margin improvement YoY Increase in 12Month order backlog to Added 187 new clients
Slide 5: Highlights of Q4FY21
Highlights of Q4FY21 Mastek crossed $65m revenue mark PAT grew by 7.7% QoQ UK Government & Health in the Q4 sector witnessed strong growth in Q4FY21 Q1 Q2 Q3 Q4 Q4 15.6% PAT margin • 3-year multi-million dollar deal FY in Q4FY21 signed to provide secure National 9.1% QoQ revenue growth 21 Biometrics
Slide 6: Financial Performance
Financial 02 Performance 01 02 03 04 05 06
Slide 7: Consistent Financial Performance
Consistent 43.5% Financial Performance Revenue growth YoY Revenue from Operations Operating EBITDA Margin PAT Margin 21.1% 23.5% 21.9% 21.9% Operating 17.3% 17.6% EBITDA margin 13.2% 13.3% 13.8% improved by 464 bps 12.1% 12.0% 12.3% 12.4% 12.7% 12.2% 12.8% 11.8% 15.7% 15.6% YoY 14.3% 11.6% 9.8% 10.0
Slide 8: Financial Summary – Q4 FY21
Financial Summary – Q4 FY21 Growth Growth Key Performance Metrics Q4FY21 Q3FY21 Q4FY20 QoQ YoY Revenue from Operations ($m) $65.9 $60.1 $46.3 7.5% (CC) 37.8%(CC) Revenue from Operations (Rs Crore) 483.2 442.8 336.7 9.1% 43.5% Revenue Other Income (Rs Crore) 3.2 3.9 17.5 (17.2)% (81.5)% Total Income
Slide 9: Financial Summary – FY21
Financial Summary – FY21 Growth Key Performance Metrics FY21 FY20 YoY Revenue from Operations ($m) $231.9 $150.2 52.2% (CC) Revenue from Operations (Rs Crore) 1,721.9 1,071.5 60.7% Revenue Other Income (Rs Crore) 27.9 41.3 (32.4)% Total Income (Rs Crore) 1,749.8 1,112.8 57.2% Op. EBITDA 364.5 155.4
Slide 10: Consolidated Financial Highlights Q4 FY21
Comparison: Quarter-on-Quarter and Year-on-Year (Figures in Rs Crore) Consolidated Financial Highlights Q4 FY21 Operating EBITDA & Operating Revenue PAT & Margin (%) 12 Months Order Backlog Margin (%) 23.5% 15.6% 21.9% 15.7% 17.3% 106.0 1,130.4 103.9 11.0% 483.2 946.7 442.8 785.1 336.7 70.3 75.7 58.
Slide 11: Balance Sheet Metrics FY21 - Consolidated
Strengthening the Balance Sheet (Figures in Rs Crore) Balance Sheet Metrics FY21 - Consolidated Return on Capital Free Cash Flow Cash & Cash Equivalent Return on Equity# Employed# 275.6 27.3% 848.9 25.6% 168.0 19.8% 16.0% 14.6% 17.1% 414.7 60.2 244.5 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19
Slide 12: Operational Performance
Operational 03 Performance 01 02 04 05 06
Slide 13: Operating Metrics Q4 FY21
Operating Metrics Q4 FY21 Strengthening our business Q4FY21 Q3FY21 Q4FY20 New Clients Added 45 57 24 Active Client (immediately preceding 12 months) 639 618 436 Client Base Top 5 33.3% 30.4% 35.8% Top 10 47.1% 44.2% 50.9% Total Employee 3,792 3,602 3,404 - Offshore 2,674 2,541 2,229 Employee - Onsit
Slide 14: Revenue Analysis Q4 FY21 - Consolidated
Balancing our portfolio Revenue Analysis Q4 FY21 - Consolidated Revenue by Market Region* Revenue by Q4FY21 32.0% 14.0% 28.0% 10.2% 15.8% Industry Segment 4.7% 5.4% 6.0% Government Q3FY21 33.0% 17.1% 21.9% 11.9% 16.1% 7.0% 10.2% 9.5% Retail Services 19.2% 17.6% 14.6% Health Financial Services* Q4FY2
Slide 15: Q4 FY21 – Consolidated Revenue by Service Line
4.6% Operational Performance Revenue By Q4FY21 38.4% 35.0% 8.1% 12.6% Service Line Q4 FY21 – 3.4% 1.3% Consolidated Q3FY21 36.9% 35.2% 10.5% 12.5% Application Development * Oracle Suite & Cloud Migration 1.5% Digital Commerce 4.6% Application Support & Maintenance BI & Analytics Q4FY20 40.8% 25.8% 1
Slide 16: Key wins for the quarter
Key wins 04 for the quarter 01 02 03 05 06
Slide 17: Public Sector and Government
Key wins for the quarter Public Sector and Government UK - Central Government ROW Client: A New Zealand Crown entity Client: UK Central Government that invests in natural disaster Departments (Multi- million deals) research and education as well as providing natural disaster insurance About the deal
Slide 18: Public Sector and Government – UK Local Government
Key wins for the quarter Public Sector and Government UK - Local Government Client: New Partnership with Civica About the deal: An initial Data exploitation service within a Local Authority Client: UK local government body in Merseyside, England involved in delivery of government services & public h
Slide 19: Healthcare and Lifesciences
Key wins for the quarter Healthcare and Lifesciences US UK Client: A global multi billion dollar medical devices company About the deal: Digitally enabling customer’s interaction with their multiple stakeholders (Pharmacists, Distributors & Consumers) and modernize their disjoint and disconnected sy
Slide 20: Manufacturing
Key wins for the quarter Manufacturing US ROW Client: Company is engaged in the Client: This family owned Victoria- business of producing and selling based and managed business, alcoholic beverages and hard cider founded in 1935, is Australia’s largest products at company-owned independently owned m
Slide 21: Retail
Key wins for the quarter Retail US Client: A leading retailer of outdoor sportswear and equipment About the deal: To eliminate growth limitations in their current commerce channels, customer selected Mastek as their Strategic partner to transform to a scalable and modern D2C channel leveraging Oracl
Slide 22: Evosys Advantage
Evosys Advantage 05 01 02 03 04 06
Slide 23: Global Leader in Oracle Cloud implementation
Global Leader in Oracle Cloud implementation, having one of the largest installed base of Oracle cloud application customers Evosys Global and Cross Pillar Value Based Delivery • 1000+ Global Customers with Our flagship program that allows us to presences in 30+ countries deliver Outcome Based Contr
Slide 24: Evosys Amongst Top Partners for Oracle
Evosys Amongst Top Partners for Oracle Improvement in ranking 2020 2021 of Evosys year on year CHALLENGERS LEADERS $20 Billion+ in services & implementation revenue opportunity around Oracle annually Existing players in ‘Leaders’ quadrant bag “Evosys is Oracle’s majority of the transformational oppo
Slide 25: On Premise to Cloud Transformation
On Premise to Cloud Transformation Oracles’ Growth Momentum Continues Momentum Continues SAP Attack • Oracle delivered solid Q321 numbers • In Q3, Oracle signed contracts and with total revenue up 3% to totaling hundreds of millions of $10.1bn dollars to migrate several very large • Fusion ERP and N
Slide 26: Highlights of EVOSYS for FY21
Highlights of EVOSYS for FY21 Fast Growth 35 new clients added Oracle is the leader in this segm Government and health during Q4FY21 ent, as stated by Gartner in its together contribute 49% of various reports the revenue in FY21 158 new clients Oracle is the 507 total active added in FY21 segment le
Slide 27: Mastek and Evosys Cross-Sell Opportunity
Mastek and Evosys Cross-Sell Opportunity Mastek Services: Evosys Services: Application Development Oracle Cloud Application Digital Commerce Implementation Application Support & Oracle On Premise Maintenance Implementations and Upgrade BI & Analytics Oracle Application Support Agile Consulting Oracl
Slide 28: Co-sell Opportunity
Strengthening Our Joint Sale Advantages of joint bids for Evosys ERP/ HCM bids Co-sell Opportunity Competitive “Total Digital Transformation” Solution offering Mastek Services Size benefit to bid for large Joint contracts and compete against large Go-to-Market players Strategy Evosys Services Multi-
Slide 29: Joint GTM Strategy – Winning Deals
Joint GTM Strategy – Winning Deals US UK & Europe Client: A full-service sales, marketing and service company in North America specializing in consumer Client: A multi billion and leading global design packaged goods & consultancy firm About the deal: Customer is looking for a complete Lead About th
Slide 30: Acquisition Updates
Acquisition Updates 06 01 02 03 04 05
Slide 31: Evosys Acquisition Update
Evosys Acquisition Update Scheme of Arrangement Business Transfer Agreement Integration (Demerger) • Transfer of shareholdings of • NOC received from Stock • Sales and Marketing teams subsidiaries of Evosys Arabia Exchanges working collaboratively as one in progress • Application filed with NCLT tea
Slide 32: Questions & Answers
Mastek*@ Thank You Questions & Answers