Mastek Limited · NSE:MASTEK
Mastek — Q3 FY2021 Earnings Presentation
34 slides from Mastek's earnings presentation, Feb 2, 2021
Slide 1: Q3 FY21 Analyst Presentation, 2nd February 2021
2nd February 2021 Presented by: Ashank Desai | Vice Chairman and Managing Director Abhishek Singh | President, Mastek Arun Agarwal | Group Vice President, Finance 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 & Macro-Economic 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 the Quarter
Highlights of the Quarter Mastek crossed $60m revenue mark Enrichment in Operating EBITDA PAT grew by 18.9% QoQ in the Q3 margin of 233 bps QoQ Q1 Q2 Q3 Q4 23.5% Operating Q3 15.7% PAT margin in Q3 Q2 FY EBITDA margin FY FY 21 Q3FY21, 144 bps 21 21 9.1% QoQ revenue growth in dollar in Q3FY21 improve
Slide 5: Financial Performance
Financial 02 Performance 01 02 03 04 05 06
Slide 6: Consistent Financial Performance
One of the best performing quarter Consistent 81.7% Financial Performance Revenue growth YoY Revenue from Operations Operating EBITDA Margin PAT Margin 21.1% 23.5% 23.5% Operating 17.3% 17.6% EBITDA margin 13.2% 13.3% 13.8% improved by 965 bps 12.1% 12.0% 12.3% 12.4% 12.7% 12.2% 12.8% 11.8% 15.7% Yo
Slide 7: Financial Summary – Q3 FY21
Financial Summary – Q3 FY21 Growth Growth Key Performance Metrics Q3FY21 Q2FY21 Q3FY20 QoQ YoY Revenue from Operations* ($m) $60.1 $55.1 $34.1 7.3% (CC) 73.9%(CC) Revenue from Operations* (Rs Crore) 442.8 409.7 243.7 8.1% 81.7% Revenue Other Income (Rs Crore) 3.9 4.1 9.5 (3.8%) (59.1%) Total Income
Slide 8: Financial Summary – 9M FY21
Financial Summary – 9M FY21 Growth Key Performance Metrics 9MFY21 9MFY20 YoY Revenue from Operations* ($m) $165.8 $104.0 58.5% (CC) Revenue from Operations* (Rs Crore) 1,238.6 734.8 68.6% Revenue Other Income (Rs Crore) 24.7 23.8 3.6% Total Income (Rs Crore) 1,263.3 758.6 66.5% Op. EBITDA 258.5 97.2
Slide 9: Consolidated Financial Highlights Q3 FY21
Comparison: Quarter-on-Quarter and Year-on-Year (Figures in Rs Crore) Consolidated Financial Highlights Q3 FY21 Operating EBITDA & Operating Revenue PAT & Margin (%) 12 Months Order Backlog Margin (%) 23.5% 21.1% 14.3% 15.7% 940.5 946.7 442.8 103.9 10.3% 409.7 13.8% 86.6 70.3 243.7 59.1 471.0 33.6 2
Slide 10: Balance Sheet Metrics 9M FY21 - Consolidated
Strengthening the Balance Sheet (Figures in Rs Crore) Balance Sheet Metrics 9M FY21 - Consolidated Return on Capital Free Cash Flow Cash & Cash Equivalent* Return on Equity# Employed# 220.6 22.2% 778.6 24.5% 168.0 16.0% 14.6% 19.8% 17.1% 414.7 60.2 244.5 FY19 FY20 9MFY21 FY19 FY20 9MFY21 FY19 FY20 9
Slide 11: Operational Performance
Operational 03 Performance 01 02 04 05 06
Slide 12: Operating Metrics Q3 FY21
Operating Metrics Q3 FY21 Strengthening our business Q3FY21 Q2FY21 Q3FY20 New Clients Added 57 37 9 Active Client (immediately preceding 12 months) 618 542 143 Client Base Top 5 30.4% 35.1% 43.3% Top 10 44.2% 45.8% 63.4% Total Employee 3,602 3,354 1,880 - Offshore 2,541 2,283 1,155 Employee - Onsite
Slide 13: Revenue Analysis Q3 FY21 - Consolidated
Balancing our portfolio Revenue Analysis Q3 FY21 - Consolidated Revenue by Market Region* Revenue by Q3FY20 32.4% 33.5% 11.4% 17.3% 5.4% Industry Segment 1.0% 4.3% 5.4% 23.1% Government Q2FY21 35.1% 19.9% 18.2% 12.1% 14.7% 10.8% 10.2% Retail Services 17.7% 17.6% Health 75.9% Financial Services Q3FY2
Slide 14: Revenue by Service Line Q3 FY21 - Consolidated
7.4% Operational Performance Revenue By Q3FY20 47.5% 22.3% 19.2% Service Line Q3 FY21 – 4.2% 3.6% Consolidated Q2FY21 40.9% 34.8% 11.0% 7.4% Application Development * Oracle Suite & Cloud Migration 1.7% Digital Commerce 3.4% Application Support & Maintenance BI & Analytics Q3FY21 36.9% 35.2% 10.5% 1
Slide 15: Key wins for the quarter
Key wins 04 for the quarter 01 02 03 05 06
Slide 16: Public Sector and Government
Key wins for the quarter Public Sector and Government UK – Central Government UK – Local Government US • Client: Central Government Department • Client: Local government organization • Client: Autonomous organization About the deal: Major win to provide providing ICT, education and other established
Slide 17: Healthcare and Lifesciences
Key wins for the quarter Healthcare and Lifesciences US UK Europe ROW • Client: A multi billion • Client: National Health • Client: A multi-billion Finnish • Client: Subsidiary of one of dollar healthcare Service Expansion pharmaceutical company the leading pharmaceutical network providing About the
Slide 18: Manufacturing & Engineering and Construction
Key wins for the quarter Manufacturing & Engineering and Construction US ROW • Client: A multi-billion dollar global company best known for manufacturing test and measurement devices such as Oscilloscopes, video and mobile test protocol equipment • Client: One of the largest About the deal: Multi-ye
Slide 19: Financial Services Telecom Retail
Key wins for the quarter Financial Services Telecom Retail ROW ME ME • Client: One of the largest bank in • Client: Qatar arm of one of the • Client: A leading retailer and Philippines largest global telecom giants distributor of some of the About the deal: Evosys is helping About the deal: Evosys w
Slide 20: Evosys Advantage
Evosys Advantage 05 01 02 03 04 06
Slide 21: 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 22: Prebuild Accelerators for On Premise to Cloud Transformation
Prebuild Accelerators for On Premise to Cloud Transformation 90 clients 8 clients 7 clients Assessment of Insights to build Advisory services Data Migration Support and configuration & expected ROI for enhancement customizations transformation services Accelerators Mastek Limited | Investor Presenta
Slide 23: Evosys - ERP, SCM Extensions/Solutions
Evosys - ERP, SCM Extensions/Solutions Evo Bank Facility Point of Sales Catch Weight Sales Management System Solution Solution Evo Subcontract Evo Van Sales Evo Mobile Supply Management Solution Chain Solution SMART Desk- Service Online Freight Multi-dimensional Request Calculation Reporting Managem
Slide 24: Oracle Named as a Magic Quadrant Leader
Oracle Named as a Magic Quadrant Leader CHALLENGERS LEADERS Magic Quadrant provides visibility into an enterprise’s financial position through automation and process support Gartner Names Oracle (Oracle ERP Cloud) a Magic Quadrant Leader Market for cloud suites will continue to evolve over next 5 to
Slide 25: For the 4th year running, Gartner has named Oracle ERP Cloud a Leader
“For the 4th year running, Gartner has named Oracle ERP Cloud a Leader in its Magic Quadrant” Magic Quadrant for Cloud ERP for Product-Centric Magic Quadrant for Cloud Core Financial Management Suites Enterprises* for Midsize, Large and Global Enterprises* Mastek Limited | Investor Presentation 2021
Slide 26: Evosys Amongst Top Leaders for Oracle Cloud Application Services
Evosys Amongst Top Leaders for Oracle Cloud Application Services Improvement in ranking For 2 consecutive years of Evosys year on year 2019 2020 $20 Billion+ in services & CHALLENGERS LEADERS CHALLENGERS LEADERS implementation revenue opportunity around Oracle annually Existing players in ‘Leaders’
Slide 27: Advantages of Evosys Acquisition: Fast Growth
Advantages of EVOSYS Acquisition Fast Growth Oracle Cloud ERP/HCM Oracle is the leader in this Evosys has been a winner, year- is growing @ 30%+ segment, as stated by Gartner after-year, in Oracle’s Global in its various reports Awards category for Performance Growth of Oracle is the Evosys - a cons
Slide 28: Advantages of Evosys Acquisition
Advantages of EVOSYS Acquisition Accelerating Client Acquisition High Profitability High EBIDTA business which is repeatable and Set of 1,300 strong serviced customer-base scalable globally; around 200 customers having >$1 billion revenue; helps in leveraging Digital Transformation services offered
Slide 29: 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 30: 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 31: Acquisition & Macro-Economic Updates
Acquisition & Macro-Economic 06 Updates 01 02 03 04 05
Slide 32: Evosys Acquisition Update
Evosys Acquisition Update Scheme of Arrangement Business Transfer Agreement Integration (Demerger) • Transfer of shareholdings of • Applications filed with BSE • Sales and Marketing teams subsidiaries of Evosys Arabia and NSE on 30 June 2020 working collaboratively as one in progress • Awaiting NOC
Slide 33: Macro Economic Factors in Our Market
Macro Economic Factors in Our Market UK US Oracle Suite and Cloud Migration • Clarity on Brexit has led to good • US business is gaining traction both • Good demand all round. Customer traction in public sector deals and in retail and non-retail sector pull experienced in newer digital transformatio
Slide 34: Questions & Answers
Mastek*@ Thank You Questions & Answers