Mastek Limited · NSE:MASTEK
Mastek — Q4 FY2013-14 Earnings Presentation
16 slides from Mastek's earnings presentation, Apr 23, 2014
Slide 1: A high end provider of Enterprise Technology Solutions
A high end provider of Enterprise Technology Solutions that enable Business Transformation in selected verticals
Slide 2: Analyst Presentation
Analyst Presentation 23 April 2014 Disclaimer: Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking sta
Slide 3: Contents
Contents 1. Building Long Term Value 2. Mastek Ideals 3. Mastek’s Positioning and Business Model 4. Mastek Value Progression 5. Mastek Insurance Portfolio 6. Financials and Business Highlights FY 2013-14
Slide 4: Building Long Term Value
Building Long Term Value ▪ Services businesses tend to deliver steady and normal valuations ▪ Non linear businesses are the real value drivers ▪ High end solutions and IP based businesses deliver non linear growth and create significant upsides in valuation High Industry Specific Vertical Solutions
Slide 5: Mastek Ideals
Mastek Ideals Sustained contribution Success of every Spotless reputation stakeholder Touch the hearts of all Mastek Ideals Listen ‘deeply’ to client Openness, mutual and Industry respect & Teamwork Provide insightful & Simple, sincere & enduring solutions straightforward Building a Valuable, Evergr
Slide 6: Mastek's Positioning - High End Vertical Solutions Player
Mastek’s Positioning - High End Vertical Solutions Player ▪ Positioning as “Specialists” who have the domain and technology capabilities to be innovation enablers. ▪ Significant investment in IP / Platforms that can deliver robust, modern solutions faster (invested over $90 million over last 5 years
Slide 7: To Be Business Model
To Be Business Model ▪ Vertical solutions provider with deep domain capabilities, reusable assets / platforms, industry specific services ▪ Targeting 85% + of revenues through high end, high margin (GM 50%+) business ▪ Long term relationships, developing into trusted partnerships with every client.
Slide 8: Mastek Value Progression till date
Mastek Value Progression till date FY 2012 FY 2014 Vertical Vertical Industry Solutions Industry Specific Specific Solutions Products Products 36% 31% 36% 46% Vanilla Horizontal Vanilla Horizontal Purpose Purpose General General Services Products Services Products - 18% - 33% - - Services Products S
Slide 9: Mastek's Insurance Product – Global Market View
Mastek’s Insurance Product – Global Market View Elixir UK Policy Admin Elixir Policy Admin Elixir Group Protection Elixir New Business & Underwriting Life & Life & Annuities Annuities UK Insurance NA Products Property IA & Casualty Elixir Asia Policy Admin Elixir Distribution Management STG Policy A
Slide 10: Financial Highlights for Q4 and FY 2013-14
Financial Highlights for Q4 and FY 2013-14 • Operating Revenue of Rs. 223.9 cr. $ q-o-q 6.8% • Total Income of Rs. 230.0 cr. against Rs. 242.3 cr. in last quarter • Total EBITDA of Rs. 18.1 cr. (7.8%) against Rs. 35.8 cr. (14.8%) last quarter Q4 • Net Profit of Rs. 11.3 cr. (4.9%) against Rs. 18.3 c
Slide 11: Business and Other Highlights – Q4/FY 2013-14
Business and Other Highlights – Q4/FY 2013-14 Business Update • Drop in revenue in North America due to re-prioritization of client’s business • Key deal wins in Policy Admin areas in P&C space Business & • Strategic wins with the UK Government through G cloud platform Other Other Areas Highlights •
Slide 12: Financial Trends: Total Income and EBITDA
Financial Trends Total Income 1,200 965 934 1,000 916 800 722 739 692 614 Rs. crore 600 400 200 - 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 EBITDA 25.0% 200 19.9% 180 18.8% 20.0% 160 140 15.0% 13.2% 120 EBITDA % Rs. crore 10.8% 100 182 182 9.6% 10.0% 80 4.8% 60 95 101 5.0% 40 0.3% 66 3
Slide 13: Financial Trends: PAT
Financial Trends PAT 20.0% 200 13.7% 14.6% 15.0% 150 9.4% 10.0% 5.0% 5.5% 100 PAT % 5.0% 141 Rs. crore 126 0.1% 50 0.0% 68 52 -9.1% 1 34 - -5.0% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 -10.0% (50) (56) -15.0% (100) FY 2012-13 represents 9 months numbers 13
Slide 14: Balance Sheet as on 31st March 2014
Balance Sheet as on 31st March 2014 31 Mar 31 Mar 31 Mar 31 Mar Equity & Liabilities (Rs. Crs.) 2014 2013 Assets (Rs. Crs.) 2014 2013 Share Capital 11.1 12.3 Fixed Assets 261.2 249.5 Reserve & Surplus 549.1 520.6 Non current Investments 2.5 2.7 Long Term borrowings 1.4 1.2 Deferred tax assets 22.5 2
Slide 15: Revenue Stack up (in Rs. Cr.)
Revenue Stack up (in Rs. Cr.) Revenue by Vertical FY 12-13 (Jul-Mar) FY 13-14 (Apr-Mar) 92.0 126.8 13% 98.8 14% 107.0 280.7 11% 455.9 16% 41% 49% 202.6 241.6 30% 26% Insurance Government Other Financial Services IT & Other services Insurance Government Other Financial Services IT & Other services Re
Slide 16: Thank You
THANK YOU About Mastek Mastek is a publicly held (NSE: MASTEK; BSE: 523704) leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek o