Mastek Limited · NSE:MASTEK
Mastek — Q1 FY2023 Earnings Presentation
30 slides from Mastek's earnings presentation, Jul 20, 2022
Slide 1: Investor Presentation – Q1FY23
Investor Presentation – Q1FY23 20 July, 2022 © Copyright Mastek, 2022. All Rights Reserved Presented by: Hiral Chandrana | Global Chief Executive Officer, Mastek Group Arun Agarwal | Global Chief Financial Officer, Mastek
Slide 2: Table of Contents
Table of Contents 01 02 03 04 05 © Copyright Mastek, 2022. All Rights Reserved Highlights of Financial & Key Wins for Acquisition Vision 2025 & the Quarter Operational the Quarter Update Strategic Performance Priorities Investor Presentation – 2 Q1FY23
Slide 3: Highlights of the Quarter
© Copyright Mastek, 2022. All Rights Reserved 01 HIGHLIGHTS OF THE QUARTER Investor Presentation – 3 Q1FY23
Slide 4: Highlights of Q1FY23
Highlights of Q1FY23 Total Income Growth Op. EBITDA Fortune 1000 Clients Year-on-Year 14.4% Margin 19.2% For Q1FY23 21 Q1FY23 revenue at Q1FY23 PAT Headcount on 30 June 2022 12 Months Order backlog at Rs 570.3 Crore Rs 84.4 Crore 5,553 Employees Rs 1,509.3 Crore © Copyright Mastek, 2022. All Rights
Slide 5: Factors impacting Q1FY23 Revenue growth
Factors impacting Q1FY23 Revenue growth 1. Currency impact driven by GBP/ USD movement in current quarter Average exchange rate of $1.26/£ in Q1FY23 vs average exchange rate of $1.34/£ in Q4FY22 2. Pause in a key program in a large healthcare account 3. Slower than expected ramp ups 4. Delayed dec
Slide 6: Awards & Recognitions
Awards & Recognitions Fortune India Next Lifetime L&D Excellence Gartner Future Ready Inspiring CEO 500 Achievement Award Recognition Organization Award Award Mastek has ranked Ashank Desai, MD and Mastek's People Evosys - A Mastek Mastek has been Hiral Chandrana, 36 on the Vice Chairman of Skills &
Slide 7: Financial & Operational Performance
© Copyright Mastek, 2022. All Rights Reserved 02 FINANCIAL & OPERATIONAL PERFORMANCE Investor Presentation – 7 Q1FY23
Slide 8: Financial Performance
Financial Performance Revenue from Operations (Rs Crore) Operating EBITDA Margin PAT Margin 23.5% 21.1% 21.9% 21.8% 21.1% 21.1% 20.8% 19.2% 17.3% 17.6% 13.3% 13.8% 11.8% 15.7% 15.6% 15.4% 15.1% 15.0% 14.3% 14.7% 14.2% © Copyright Mastek, 2022. All Rights Reserved 11.0% 11.6% 9.6% 9.7% 10.3% 248 244
Slide 9: Consolidated Financial Summary – Q1FY23
Consolidated Financial Summary – Q1FY23 Growth Growth Key Performance Metrics Q1FY23 Q4FY22 Q1FY22 QoQ YoY Revenue from Operations ($mn) $73.6 $77.2 $70.2 (4.7)% 5.0% Revenue from Operations (Rs Crore) 570.3 581.5 516.5 (1.9)% 10.4% Revenue 25.8 17.9 43.6% 448.0% Other Income (Rs Crore) 4.7 Total In
Slide 10: Consolidated Financial Highlights Q1FY23
Consolidated Financial Highlights Q1FY23 Comparison: Quarter-on-Quarter and Year-on-Year (Figures in Rs Crore) Operating Operating EBITDA PAT & 12 Months Revenue & Margin (%) Margin (%) Order Backlog 21.8% 20.8% 19.2% 14.7% 14.2% 581.5 15.4% 1,509.3 570.3 1,469.1 1,177.7 516.5 120.7 112.8 88.2 84.4
Slide 11: Balance Sheet Metrics Q1FY23 – Consolidated
Balance Sheet Metrics Q1FY23 – Consolidated (Figures in Rs Crore) Cash & Cash Equivalent Return on Equity# Return on Capital Employed# 848.9 29.5% 794.0 33.6% 31.4% 664.6 27.3% 25.6% 24.2% © Copyright Mastek, 2022. All Rights Reserved FY21 FY22 Q1FY23 FY21 FY22 Q1FY23 FY21 FY22 Q1FY23 Net Cash FY21:
Slide 12: Operating Metrics Q1FY23
Operating Metrics Q1FY23 Strengthening our business Q1FY23 Q4FY22 Q1FY22 New Clients Added 33 49 40 Active Client during the Quarter 402 450 452 Client Base Top 5 28.7% 30.1% 33.0% Top 10 41.1% 43.1% 47.7% Total Employee 5,553 4,977 4,302 - Offshore 4,208 3,682 3,181 Employee - Onsite 1,345 1,295 1,
Slide 13: Revenue Analysis Q1FY23 - Consolidated
Revenue Analysis Q1FY23 - Consolidated Balancing our portfolio Revenue by Market Region* Revenue by Contract Type 6.0% 4.9% 4.9% 8.5% 8.2% 9.2% 42.4% 48.2% 54.5% 15.4% 18.4% 18.8% 70.1% 68.5% 67.1% 57.6% 51.8% 45.5% © Copyright Mastek, 2022. All Rights Reserved Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1F
Slide 14: Operational Performance: Revenue by Industry Segments
Operational Performance Revenue By Industry Segments* Q1FY23 – Consolidated Q1FY23 40.3% 19.4% 15.5% 13.6% 11.2% Government & Education Q4FY22 38.2% 22.8% 14.5% 12.9% 11.6% Health & Life Sciences ** Retail/ Consumer Manufacturing & Technology © Copyright Mastek, 2022. All Rights Reserved Q1FY22 36.4
Slide 15: Operational Performance: Revenue by Practice Line
Operational Performance Revenue By Practice Line* Q1FY23 – Consolidated Q1FY23 42.8% 37.8% 10.8% 8.6% Digital & Application Engineering Q4FY22 40.8% 35.5% 11.2% 12.5% Oracle Cloud & Enterprise Apps Digital Commerce & Experience © Copyright Mastek, 2022. All Rights Reserved Q1FY22 50.5% 30.2% 12.2% 7
Slide 16: Key Wins for the Quarter
© Copyright Mastek, 2022. All Rights Reserved 03 KEY WINS FOR THE QUARTER Investor Presentation – 16 Q1FY23
Slide 17: Key wins for the quarter
Key wins for the quarter Government & Education Financial Services UK & Europe ROW Europe Client One of the top University in UK Regional council that provides services Leading international home-credit and providing research led education to to third largest city in Western digital loans provider o
Slide 18: Key wins for the quarter (Cont'd)
Key wins for the quarter (Cont’d) Health and Lifesciences Americas Americas ME Client Technology-enabled healthcare service A Global developer and manufacturer A multi-specialty hospital located in provider, who partners with of chromatography columns, sample Abu Dhabi, United Arab Emirates governme
Slide 19: Key wins for the quarter (Cont'd)
Key wins for the quarter (Cont’d) Manufacturing & Technology Europe Europe Client One of world’s leading provider of IP Multinational lead-acid manufacturing Video Management Systems with over company, manufacturing automotive 1,000 employees across development and industrial batteries centers and h
Slide 20: Key wins for the quarter
Key wins for the quarter Retail/ Consumer Americas Americas Client Client is a leader in the global lifestyle One of the fastest growing optical bag industry and is the world's best- retailers in the United States known and largest travel luggage company About the deal Mastek already an Oracle HCM C
Slide 21: Acquisition Update
© Copyright Mastek, 2022. All Rights Reserved 04 ACQUISITION UPDATE Investor Presentation Earning Deck– 21 Q1FY23
Slide 22: Mastek Signs Definitive Agreement to Acquire MST Solutions
Mastek SIGNS DEFINITIVE AGREEMENT TO Acquire MST Solutions A Salesforce focused CONSULTING and SYSTEM Integration PARTNER Mastek Ltd through its subsidiary agreed to acquire Meta Soft Tech Solutions, LLC (MST Solutions). The deal has been structured in two stages: • MetaSoft Tech Solutions, LLC is a
Slide 23: Strategic Rationale
Strategic Rationale Ability to address a large Key Component of Alignment to US Geo Complementary Strong cultural fit high growth net new Mastek’s vision 2025 with Global potential Capabilities market for Mastek • Large Target • MST is a summit-level • MST is focused on US • MST’s CX capabilities •
Slide 24: MST at a Glance
MST at a Glance Strong Established Salesforce Customer ~320+ Financial in 2012 focused profile Employees profile • Headquartered in • 100% focused on the • 8 Fortune1000 clients • Strong offshore delivery • Strong Revenue growth Arizona, US; Offshore Salesforce ecosystem • Strong presence in HLS poo
Slide 25: Complete Salesforce Suite with Enterprise Integration
Complete Salesforce Suite with Enterprise Integration Solution Architecture & Design Core Offerings Dedicated practice that can deliver full-scale blueprints with enterprise level complexity. Broad, multi- discipline expertise. Sales Service Experience Marketing Salesforce Build & Implementation Clo
Slide 26: Mastek & MST Solutions
Mastek & MST Solutions Delivering value to customers… and to each other • Global Digital Engineering & Cloud Transformation • Summit level Salesforce partner Services provider • Expertise across Sales, Service, Experience, Marketing, • Strong presence in US, UK, Europe, 40+ countries Integration & V
Slide 27: Vision 2025 Strategy & Strategic Priorities
© Copyright Mastek, 2022. All Rights Reserved 05 VISION 2025 STRATEGY & STRATEGIC PRIOIRTIES Investor Presentation Earning Deck– 27 Q1FY23
Slide 28: Our Collective Vision and Goals for FY 25-26
Our Collective Vision and Goals for FY 25-26 Trusted and Turnkey Digital Engineering & Cloud Transformation Partner Be at $1Bn in the 2nd half of the decade Mission Approach We Enable Success Trusted Long-term Partnerships with Top 3 in Growth among for our Clients, Employees, & Industry focused mid
Slide 29: Strategic Priorities for FY23
Strategic Priorities for FY23 Massive Untapped Continued Growth Differentiated Strategic Partners One Mastek Brand Opportunity in UK Public Sector + Talent and and Innovation ESG Commits Americas Oracle Cloud Delivery model Ecosystem Mastek Brand – Digital Healthcare and Life Top 5 – Home Office, Ca
Slide 30: Thank You
Thank You This presentation contains information that may be privileged or confidential and is the property of Mastek. Copyright © 2022 Mastek. All rights reserved. Note: Except for the historical information and discussion contained herein, statements included in this release may constitute forward