Mastek Limited · NSE:MASTEK
Mastek — Q1 FY24 Earnings Presentation
44 slides from Mastek's earnings presentation, Jul 19, 2023
Slide 1: Outcome of Board Meeting, July 19, 2023
SEC/37/2023-24 July 19, 2023 Listing Department Listing Department BSE Limited The National Stock Exchange of India Limited 25th Floor, Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street, Fort, Bandra Kurla Complex, Mumbai-400 001 Bandra (E), Mumbai – 400 051 Tel No. 022- 22723121
Slide 2: Board approvals: BizAnalytica acquisition and business sale agreement
Further, Mr. Umang Nahata holds 16,55,840 (5.42%) shares in the Company. We also confirm that Mr. Umang Nahata is not debarred from holding the office of the director pursuant to any SEBI order or any such authority. 2. Approval of proposal for the acquisition of 100% Membership Interest Purchase Ag
Slide 3: Corporate guarantee and approval of Q1 results
4. Providing Corporate Guarantee on behalf of Wholly Owned Subsidiary. The Board of Directors has also approved providing the Corporate Guarantee up to USD 26.3 million (to secure a facility for Mastek Inc. USA and Mastek Systems Company Limited, UK entity) Wholly Owned First Level Step- down Subsid
Slide 4: Annexure I: Disclosure of acquisition
ANNEXURE I Disclosure of Event and information pursuant to Regulation 30 - Acquisition Sr. Particulars Details No. 1. Name of the target entity, details in brief such BizAnalytica LLC (“BizAnalytica USA”) – is based in as size, turnover, etc. Londonderry, New Hampshire, USA, offering a full range of
Slide 5: Annexure I: Acquisition particulars (continued)
Sr. Particulars Details No. 9. Percentage of shareholding / control acquired 100% Membership Interest and / or number of shares acquired 10. Brief background about the entity acquired in BizAnalytica LLC incorporated on May 14, 2018, is based terms of products/line of business acquired, in Londonder
Slide 6: Annexure II: Issuance of corporate guarantee
“ANNEXURE II” ISSUANCE OF CORPORATE GUARANTEE Sr. No. Particulars Details a. Name of the party for which such guarantees or Following Wholly Owned First Level Step-down indemnity or surety was given Subsidiary of Mastek Limited: a. Mastek Inc – USA Entity b. Mastek Systems Company Limited – UK Entit
Slide 7: Press Release Q1FY24
Trust. Value. Velocity. Press Release | Q1FY24
Slide 8: Q1FY24 revenue at Rs 725.3 crore, up by 27.2% Y-o-Y
For Immediate Release Q1FY24 revenue at Rs 725.3 crore, up by 27.2% Y-o-Y Signed definitive agreement to acquire BizAnalytica, LLC - a data cloud & modernization specialist Operating EBITDA at 17.5% of revenue 12 months order backlog grew by 16.9% Y-o-Y Mumbai, India 19th July 2023: Mastek, a
Slide 9: Review of Consolidated Financial Performance for the Quarter
For Immediate Release Review of the Consolidated Financial Performance for the Quarter ended 30th June 2023: Figures in $mn Q1FY24 Q4FY23 Q-o-Q Growth Q1FY23 Y-o-Y Growth Revenue from Operations $88.1 $86.3 2.2% $73.6 19.7% Figures in Rs Crore Q1FY24 Q4FY23 Q-o-Q Growth Q1FY23 Y-o-Y Growth Total Inc
Slide 10: Acquisition Update and Key wins for the quarter
For Immediate Release Acquisition Update The Company’s Wholly Owned First Level Step-down Subsidiary i.e., Mastek Inc. at its meeting held on July 18, 2023, approved to sign the definitive Membership Interest Purchase Agreement to acquire the 100% Membership Interest of BizAnalytica, LLC. BizAnalyti
Slide 11: Key wins, Awards & Recognitions
For Immediate Release Mastek will implement Oracle HCM Cloud modules for a US-based cybersecurity organization, offering a global solution to deliver better operational efficiency, increased productivity, and global excellence across all people processes Mastek signed a 3 year Datawarehousing an
Slide 12: About Mastek
For Immediate Release About Mastek Mastek (NSE: MASTEK; BSE: 523704), is a turnkey and trusted digital engineering and Cloud transformation partner that delivers Innovative solutions and business outcomes for clients in Healthcare & Life Sciences, Retail, Manufacturing, Financial Services, Governmen
Slide 13: Thank You
For Immediate Release Thank You T Thank You Trust. Value. Velocity. _________________________________________________________________________________ 7 of 7
Slide 14: Investor Presentation Q1FY24 July 2023
INVESTOR PRESENTATION Q1FY24 19 July 2023 Presented by: Hiral Chandrana | Chief Executive Officer, Mastek Arun Agarwal | Chief Financial Officer, Mastek
Slide 15: Table of Contents
Table of Contents 01 02 03 04 05 Highlights Financial & Key Wins for Acquisition Strategic of the Operational the Quarter Update Priorities Quarter Performance Investor Presentation | Earning Deck Company Confidential © Mastek 2023. All rights reserved | 2
Slide 16: Highlights of the Quarter
Mastek*@ Trust. Value. Velocity HIGHLIGHTS OF THE QUARTER
Slide 17: Highlights of Q1FY24
HIGHLIGHTS OF Q1FY24 Revenue Growth Operating EBITDA 12month Order backlog Year-on-Year 27.2% Margin 17.5% Year-on-Year Growth 16.9% Q1FY24 revenue at Q1FY24 Op. EBITDA 12 Months Order backlog at ₹ 725.3 Crore ₹ 127.0 Crore ₹ 1,763.9 Crore Revenue grew by Op. EBITDA grew by 12 months order backlog g
Slide 18: Key Achievements & Recognitions
KEY ACHIEVEMENTS & RECOGNITIONS Featured in IDC Recognized as a Featured as Named in ISG Top MarketScape, Asia "Challenger" in Aspirant in 15 Sourcing Pacific Oracle Avasant's Everest Group’s Standout Globally Application Radarview PEAK Matrix® under 'Booming 15' Implementation Salesforce Assessment
Slide 19: Progress on Generative AI
PROGRESS ON GENERATIVE AI Mastek Approach & Dimensions Strategic Win Experience Centre • CXPro Solution & Netail.ai Partnership Mastek has won a strategic Generative AI Mastek announced opening of the for Retail & Consumer industries program with an industrial manufacturing innovative & state-of-the
Slide 20: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE
Slide 21: Financial Performance
FINANCIAL PERFORMANCE 800 23.5% 25.0% 21.9% 21.8% 700 21.1% 21.1% 21.1% 20.8% 19.2% 20.0% 600 17.3% 17.6% 17.3% 17.7% 17.5% 17.2% 500 13.3% 13.8% 15.0% 15.6% 15.4% 15.1% 11.8% 15.0% 14.7% 400 15.7% 14.2% 13.6% 14.3% 11.6% 11.0% 10.0% 300 10.1% 10.2% 10.1% 200 9.6% 9.7% 10.3% 5.0% 100 248 244 244 337
Slide 22: Consolidated Financial Highlights Q1FY24
CONSOLIDATED FINANCIAL HIGHLIGHTS Q1FY24 Comparison: Quarter-on-quarter & Year-on-year (Figures In ₹ Crore) Operating Operating EBITDA PAT & 12 Months Revenue & Margin (%) Margin (%) Order Backlog 14.2% 19.2% 17.7% 17.5% 10.2% 10.1% 1,509.3 1,794.1 1,763.9 570.3 709.2 725.3 109.2 125.5 127.0 84.4 72
Slide 23: Consolidated Financial Summary – Q1FY24
CONSOLIDATED FINANCIAL SUMMARY – Q1FY24 QoQ YoY Key Performance Metrics Q1FY24 Q4FY23 Q1FY23 Growth Growth Revenue from Operations ($mn) $88.1 $86.3 $73.6 0.4% (CC) 20.2% (CC) Revenue from Operations (₹ Crore) 725.3 709.2 570.3 2.3% 27.2% Revenue Other Income (₹ Crore) 2.4 (0.4) 25.8 675.6% (90.8%)
Slide 24: Balance Sheet Metrics Q1FY24 – Consolidated
BALANCE SHEET METRICS Q1FY24 – CONSOLIDATED Figures In ₹ Crore Cash & Cash Equivalent Return on Equity# Return on Capital Employed# 29.5% 20.7% 16.2% 794.0 270.0 220.2 33.6% 20.1% 24.0% FY22 FY23 Q1FY24 FY22 FY23 Q1FY24 FY22 FY23 Q1FY24 # Return on Equity = PAT/Average Networth; Return on Capital Em
Slide 25: Operating Metrics Q1FY24
OPERATING METRICS Q1FY24 Strengthening our business Q1FY24 Q4FY23 Q1FY23 New Clients Added 22 28 33 Active Client during the Quarter 436 464 402 Client Base Top 5 30.8% 29.6% 28.7% Top 10 41.0% 40.6% 41.1% No. of Clients with Annual Billing > USD 1mn 60 61 51 Total Employee 5,592 5,622 5,553 • Offsh
Slide 26: Revenue Analysis Q1FY24 – Consolidated
REVENUE ANALYSIS Q1FY24 – CONSOLIDATED Balancing Our Portfolio Revenue by Market Region* Revenue by Contract Type 4.9% 4.3% 4.1% 9.2% 9.3% 12.1% 18.8% 44.1% 44.9% 26.0% 25.3% 54.5% 67.1% 60.4% 58.5% 45.5% 55.9% 55.1% Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 UK & Europe US ME ROW Time & Material Fix
Slide 27: Operational Performance: Revenue by Industry Segments
OPERATIONAL PERFORMANCE Revenue By Industry Segments Q1FY24 – Consolidated Q1FY24 44.6% 14.6% 12.4% 17.0% 11.4% Government & Education Health & Life Sciences Q4FY23 43.0% 16.0% 13.1% 15.5% 12.4% Retail/ Consumer Manufacturing & Technology Financial Services # Q1FY23 40.3% 19.4% 15.5% 13.6% 11.2% 0%
Slide 28: Operational Performance: Revenue by Service Line
OPERATIONAL PERFORMANCE Revenue By Service Line Q1FY24 – Consolidated Q1FY24 44.8% 32.2% 18.3% 4.7% Digital & Application Engineering Oracle Cloud & Enterprise Apps Q4FY23 44.7% 28.9% 19.5% 6.9% Digital Commerce & Experience Data, Automation and AI Q1FY23 42.8% 37.8% 10.8% 8.6% 0% 10% 20% 30% 40% 50
Slide 29: Key Wins for the Quarter
@ Mastek ® Trust. Value. Velocity KEY WINS FOR THE QUARTER
Slide 30: Key Wins: Government & Education
KEY WINS FOR THE QUARTER Government & Education UK & Europe UK & Europe UK & Europe Americas Client One of the largest local councils for Southeast England. They employ over A public University in USA established in A modern University created in 2002 Central government department with a 7,500 peopl
Slide 31: Key Wins: Healthcare
KEY WINS FOR THE QUARTER Healthcare Americas Americas AMEA Client The Company owns and operates retirement The Company offers individual, family, group, homes across the United States offering variety of Medicare, and Medicaid health insurance and The Company owns multiple clinics across KSA service
Slide 32: Key Wins: Manufacturing, Retail, and Hi-Tech
KEY WINS FOR THE QUARTER Manufacturing, Retail, and Hi-Tech UK & Europe Americas Americas Americas Client Finnish consumer packaging company A US-based cybersecurity organization whose production includes food An innovative beauty brand offering nail Leading American company that engaged in developm
Slide 33: Acquisition Update
Mastek*@ Trust. Value. Velocity ACQUISITION UPDATE
Slide 34: Mastek Signs Definitive Agreement with BizAnalytica
MASTEK SIGNS DEFINITIVE AGREEMENT WITH BIZANALYTICA Mastek signs definitive agreement to acquire BizAnalytica, LLC - a data cloud & modernization specialist BizAnalytica, LLC to be acquired by Mastek Inc., a wholly owned subsidiary of Mastek Limited Investor Presentation | Earning Deck Company Confi
Slide 35: BizAnalytica at a Glance
BIZANALYTICA AT A GLANCE Established Data Customer 120+ Strong Growth in 2017 focused profile Employees profile • Headquartered in • End-to-end Data Cloud • Enterprise clients in • Strong pool of Data • Revenue CAGR (CY20 - Boston, US and Modernization Financial Services, Architects and engineers. C
Slide 36: Enterprise Data Modernization and Transformation Services
ENTERPRISE DATA MODERNIZATION AND TRANSFORMATION SERVICES Design & Proof of Discovery Strategy Production Development Concept Data Cloud and Data Management & Data Science Support and Modernization Warehousing & Analytics Managed Services Strategy Define business goals for Design and architect the B
Slide 37: Strategic Rationale
STRATEGIC RATIONALE • Customers looking to harness data for better decision-making, requiring modern Cloud data Large, High warehouses and processing solutions for handling large, flexible workloads Growth Market • Generative AI use cases to drive significant demand for Enterprise Data • Data Modern
Slide 38: Strong Synergy Potential
STRONG SYNERGY POTENTIAL Developing Provide next Strong Data Cloud Strengthens Vertical Potential to custom Data- generation Capabilities on capabilities in Retail position Mastek centric solutions Analytics Services leading platforms & HLS, while adding services into complementary to around like Sn
Slide 39: Mastek & BizAnalytica: Building AI-Driven Enterprises
MASTEK & BIZANALYTICA BUILDING AI-DRIVEN ENTERPRISES • Global Digital Engineering & Cloud Transformation • Extensive Data Services Services provider expertise with depth across • Strong presence in US, UK, Data Cloud Platforms – Europe, 40+ countries Snowflake, AWS, Databricks • 5600+ resources, Glo
Slide 40: Strategic Priorities
Mastek*@ Trust. Value. Velocity STRATEGIC PRIOIRTIES
Slide 41: 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 42: Strategic Big Bets FY24
STRATEGIC BIG BETS FY24 Mgd Services Cost take out larger deals Healthcare in Account Mining US/ME with Oracle/Cerner (Top 40 a/c & Salesforce globally) UK Secure Govt. Oracle & Growth Salesforce Channel Stage for Oracle Penetration Service Line Differentiation (Snowflake & AWS Cloud) Investor Prese
Slide 43: Non-Linear Impact – Platforms and IP
NON-LINEAR IMPACT – PLATFORMS AND IP Connected Enterprise Intellectual Property EWS - aaS WH360 - aaS Service Fraud Analytics Governance (with Volteo Edge) • Launch multi-tenanted • Launch multi-tenanted • Healthcare and Life • Manage Filing and • Financial Services, Retail version version Sciences,
Slide 44: 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