Mastek Limited · NSE:MASTEK
Mastek — Q3 FY2023 Earnings Presentation
29 slides from Mastek's earnings presentation, Jan 17, 2023
Slide 1: Investor Presentation Q3FY23
INVESTOR PRESENTATION Q3FY23 17 January 2023 Presented by: Hiral Chandrana | Global Chief Executive Officer, Mastek Arun Agarwal | Global Chief Financial Officer, Mastek
Slide 2: Table of Contents
Table of Contents 01 02 03 04 05 06 Highlights Financial & Key Wins for Strategic Acquisition Strategic of the Operational the Quarter Investment Update Priorities Quarter Performance Update Investor Presentation | Earning Deck Company Confidential © Mastek 2023. All rights reserved | 2
Slide 3: Highlights of the Quarter
Mastek*@ Trust. Value. Velocity HIGHLIGHTS OF THE QUARTER
Slide 4: Highlights of Q3FY23
HIGHLIGHTS OF Q3FY23 Revenue Growth Operating EBITDA (Q3) 12month Order backlog Year-on-Year (CC) 20.0% Margin 17.3% Year-on-Year Growth (CC) 29.7% Q3FY23 revenue at Q3FY23 Op. EBITDA 12 Months Order backlog at ₹ 658.7 Crore ₹ 113.7 Crore ₹ 1,705.8 Crore Revenue grew by Op. EBITDA grew by 12 months
Slide 5: Key Achievements & Recognitions
KEY ACHIEVEMENTS & RECOGNITIONS Launched self- Received Recognized as service international Strategic ‘Product ‘Medicare shop industry Investment in Challenger’ by & Enroll’ portal recognition Volteo Edge ISG – Oracle – Banner Health from ‘SASB’ on Ecosystem 2022 Customer ESG Volteo Salesforce Busin
Slide 6: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 700 23.5% 25.0% 21.9% 21.8% 21.1% 21.1% 21.1% 20.8% 600 19.2% 20.0% 17.3% 17.6% 17.3% 500 17.2% 13.3% 13.8% 15.0% 400 11.8% 15.7% 15.6% 15.4% 15.1% 14.3% 15.0% 14.7% 14.2% 13.6% 300 11.0% 11.6% 10.0% 9.6% 10.1% 200 9.7% 10.3% 5.0% 100 248 244 244 337 386 410 443 483 517 534 552
Slide 8: Consolidated Financial Summary – Q3FY23
CONSOLIDATED FINANCIAL SUMMARY – Q3FY23 QoQ YoY Key Performance Metrics Q3FY23 Q2FY23 Q3FY22 Growth Growth Revenue from Operations ($mn) $80.1 $78.1 $73.6 3.1% (CC) 20.0% (CC) Revenue from Operations (₹ Crore) 658.7 625.3 551.9 5.3% 19.3% Revenue Other Income (₹ Crore) 6.0 6.9 5.7 (12.7)% 5.1% Total
Slide 9: Consolidated Financial Summary – 9MFY23
CONSOLIDATED FINANCIAL SUMMARY – 9MFY23 YoY Key Performance Metrics 9MFY23 9MFY22 Growth Revenue from Operations ($mn) $231.8 $215.7 18.0% (CC) Revenue from Operations (₹ Crore) 1,854.2 1,602.3 15.7% Revenue Other Income (₹ Crore) 38.7 18.2 113.2% Total Income (₹ Crore) 1,892.9 1,620.5 16.8% Op. EBI
Slide 10: Consolidated Financial Highlights Q3FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3FY23 Comparison: Quarter-on-quarter & Year-on-year (Figures In ₹ Crore) Operating Operating EBITDA PAT & 12 Months Revenue & Margin (%) Margin (%) Order Backlog 21.1% 15.0% 13.6% 17.2% 17.3% 10.1% 1,271.3 1,522.0 1,705.8 551.9 625.3 658.7 116.2 107.4 113.7 83.5 86
Slide 11: Balance Sheet Metrics 9MFY23 – Consolidated
BALANCE SHEET METRICS 9MFY23 – CONSOLIDATED Figures In ₹ Crore Cash & Cash Equivalent Return on Equity# Return on Capital Employed# 25.6% 29.5% 21.9% 848.9 794.0 324.9 27.3% 33.6% 25.4% FY21 FY22 9MFY23 FY21 FY22 9MFY23 FY21 FY22 9MFY23 The Cash & Cash Equivalents have declined during the year as a
Slide 12: Operating Metrics Q3FY23
OPERATING METRICS Q3FY23 Strengthening our business Q3FY23 Q2FY23 Q3FY22 New Clients Added 31 20 25 Active Client during the Quarter 444 449 421 Client Base Top 5 28.1% 27.8% 28.5% Top 10 39.2% 39.8% 44.4% No. of Clients with Annual Billing > USD 1mn 59 56 44 Total Employee 5,687 5,810 4,785 • Offsh
Slide 13: Revenue Analysis Q3FY23 – Consolidated
REVENUE ANALYSIS Q3FY23 – CONSOLIDATED Balancing Our Portfolio Revenue by Market Region* Revenue by Contract Type 6.0% 5.0% 4.1% 9.2% 8.8% 9.2% 18.5% 24.2% 49.5% 49.1% 46.5% 27.8% 66.3% 62.0% 58.9% 50.5% 50.9% 53.5% Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 UK & Europe US ME ROW Time & Material Fixe
Slide 14: Operational Performance: Revenue by Industry Segments
OPERATIONAL PERFORMANCE Revenue By Industry Segments* Q3FY23 – Consolidated Q3FY23 41.4% 16.2% 14.1% 16.1% 12.2% Government & Education Health & Life Sciences ** Q2FY23 42.3% 14.9% 15.8% 15.7% 11.3% Retail/ Consumer Manufacturing & Technology Financial Services # Q3FY22 38.0% 24.1% 14.4% 12.7% 10.8%
Slide 15: Operational Performance: Revenue by Practice Line
OPERATIONAL PERFORMANCE Revenue By Practice Line* Q3FY23 – Consolidated Q3FY23 43.5% 29.2% 21.7% 5.6% Digital & Application Engineering Oracle Cloud & Enterprise Apps Q2FY23 42.2% 32.2% 19.5% 6.1% Digital Commerce & Experience Data, Automation and AI Q3FY22 43.2% 34.4% 11.4% 11.0% 0% 10% 20% 30% 40%
Slide 16: Key Wins for the Quarter
@ Mastek ® Trust. Value. Velocity KEY WINS FOR THE QUARTER
Slide 17: Key Wins: Government & Education
KEY WINS FOR THE QUARTER Government & Education UK & Europe UK & Europe Americas AMEA Client A unique endeavor conceived by one of A leading MIS provider for 15,000 the world's largest sovereign wealth A government administration in Florida A ministerial department responsible for schools across UK
Slide 18: Key Wins: Health and Lifesciences
KEY WINS FOR THE QUARTER Health and Lifesciences UK & Europe Americas AMEA Client An Arm’s Length Body (ALB) of the Dept. of Health The Company offers individual, family, group, The largest integrated network in the region that & Social Care which provides a number of support Medicare, and Medicaid
Slide 19: Key Wins: Retail / Manufacturing
KEY WINS FOR THE QUARTER Retail / Manufacturing UK & Europe Americas Americas AMEA Client A leading semiconductor manufacturer The Client’s line of business includes A US-based automotive parts distributor with over 33,000 employees and seven manufacturing structural metal work 4th largest retailer
Slide 20: Strategic Investment Update
STRATEGIC INVESTMENT UPDATE
Slide 21: Investment Will Accelerate Penetration of Connected Enterprise Market
INVESTMENT WILL ACCELERATE MASTEK’S ABILITY TO PENETRATE THE EMERGING CONNECTED ENTERPRISE MARKET Volteo Edge – an IoT Edge PaaS provider and an Intel & ServiceNow Partner, has established first of its Volteo Edge strategically bridges IOT volteoedge.com kind Edge2Service (E2S) ecosystem with Workfl
Slide 22: Volteo Edge Case Study
VOLTEO EDGE CASE STUDY Volteo Helps T.D. Williamson Reduce Equipment Maintenance Costs The engagement is motivated by a shared goal to enable a fully configured IoT sensor-based data collection capability for the isolation segment. The resulting capability will enable TDW to streamline operations an
Slide 23: Acquisition Update
Mastek*@ Trust. Value. Velocity ACQUISITION UPDATE
Slide 24: Mastek Will Leverage the MST Acquisition to Drive Key Strategies
MASTEK WILL LEVERAGE THE MST ACQUISITION TO DRIVE OUR KEY STRATEGIES Customer 360 Strong State & Local Salesforce Industry Front Office SF CX and Focus capabilities across Govt. and Hi-tech Solutions in Healthcare Enterprise Architecture Salesforce Clouds Clients Accelerated Growth in Deeper Account
Slide 25: Strengthening Healthcare Presence (Banner Health)
STRENGTHENING HEALTHCARE PRESENCE (BANNER HEALTH) https://www.mstsolutions.com/case-studies/arizona-state-land-departments-transformation-to- MST Solutions and Banner Health Launch Self-Service Medicare the Shop and Enroll Portal | MST Solutions cloud/?utm_content=224090231&utm_medium=social&utm_sou
Slide 26: New Vertical for Americas - State & Local Government
NEW VERTICAL FOR AMERICAS - STATE & LOCAL GOVERNMENT Local Government Solutions Natural Resources & Land Management Workers Compensation & Administrative Law Licensing, Permitting & Inspections Grants Management & Performance Measurement Arizona State Land Department Embraces Cloud Technology, Moder
Slide 27: Strategic Priorities
@ Mastek ® Trust. Value. Velocity STRATEGIC PRIOIRTIES
Slide 28: Mastek Strategic Priorities
MASTEK STRATEGIC PRIORITIES Turnkey Digital Engineering & Cloud Transformation Partner Massive Untapped Continued Growth Differentiated Digital & Cloud Mastek Brand, M&A Opportunity in in UK Public Sector Talent and Delivery Services Innovation & ESG Americas EU, ME expansion model Strategic Partner
Slide 29: 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