Mastek Limited · NSE:MASTEK
Mastek — Q2 FY2024 Earnings Presentation
30 slides from Mastek's earnings presentation, Oct 19, 2023
Slide 1: Investor Presentation Q2FY24
INVESTOR PRESENTATION Q2FY24 19 October 2023 Presented by: Hiral Chandrana | Chief Executive Officer, Mastek Arun Agarwal | Chief Financial Officer, Mastek
Slide 2: 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 3: Highlights of the Quarter
Mastek*@ Trust. Value. Velocity HIGHLIGHTS OF THE QUARTER
Slide 4: Highlights of Q2FY24
HIGHLIGHTS OF Q2FY24 Revenue Growth Op. EBITDA Growth 12month Order backlog Year-on-Year 22.4% Year-on-Year 14.6% Year-on-Year Growth (CC*) 13.4% Q2FY24 revenue at Q2FY24 Op. EBITDA 12 Months Order backlog at ₹ 765.5 Crore ₹ 123.0 Crore ₹ 1,861.8 Crore Revenue grew by Op. EBITDA margin 12 months ord
Slide 5: Key Achievements & Recognitions
KEY ACHIEVEMENTS & RECOGNITIONS Listed in Enterprise Recognized as one of TechMarketView’s Won the ISG Paragon Workforce the global Top Five report on the UK Awards 2023, North Scheduler (EWS) Oracle Cloud Central America, in the Platform has been Applications (OCA) Government ‘Environment acknowled
Slide 6: #Decomplex Generative AI: Mastek Positioning and Relevant Offerings
#DECOMPLEX GENERATIVE AI MASTEK POSITIONING AND RELEVANT OFFERINGS Foundational data Co-create Data create.ai preparation through customer specific Modernization Data Integration use cases Services Implement Generative AI Orchestrate & Implement plan.ai orchestrate.ai features of existing platforms
Slide 7: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 900 23.5% 25.0% 21.9% 21.8% 800 21.1% 21.1% 21.1% 20.8% 19.2% 20.0% 700 17.6% 17.3% 17.7% 17.5% 17.3% 17.2% 600 16.1% 13.3% 13.8% 15.0% 15.7% 15.6% 500 11.8% 15.4% 15.1% 15.0% 14.7% 14.3% 14.2% 13.6% 400 11.0% 11.6% 10.0% 10.3% 10.1% 10.2% 10.1% 300 9.6% 9.7% 8.5% 200 5.0% 100
Slide 9: Consolidated Financial Highlights Q2FY24
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2FY24 Comparison: Quarter-on-quarter & Year-on-year (Figures In ₹ Crore) Operating Operating EBITDA PAT & 12 Months Revenue & Margin (%) Margin (%) Order Backlog 17.2% 17.5% 13.6% 16.1% 10.1% 8.5% 1,522.0 1,763.9 1,861.8 625.3 725.3 765.5 107.4 127.0 123.0 86.2 73.
Slide 10: Consolidated Financial Summary – Q2FY24
CONSOLIDATED FINANCIAL SUMMARY – Q2FY24 QoQ YoY Key Performance Metrics Q2FY24 Q1FY24 Q2FY23 Growth Growth Revenue from Operations ($mn) $92.6 $88.1 $78.1 4.4% (CC) 13.5% (CC) Revenue from Operations (₹ Crore) 765.5 725.3 625.3 5.6% 22.4% Revenue Other Income (₹ Crore) 4.8 2.4 6.9 104.7% (30.1%) Tot
Slide 11: Consolidated Financial Summary – H1FY24
CONSOLIDATED FINANCIAL SUMMARY – H1FY24 YoY Key Performance Metrics H1FY24 H1FY23 Growth Revenue from Operations ($mn) $ 180.7 $151.7 16.7% (CC) Revenue from Operations (₹ Crore) 1,490.8 1,195.6 24.7% Revenue Other Income (₹ Crore) 7.2 32.7 (78.0%) Total Income (₹ Crore) 1,498.0 1,228.2 22.0% Op. EB
Slide 12: Balance Sheet Metrics H1FY24 – Consolidated
BALANCE SHEET METRICS H1FY24 – CONSOLIDATED Figures In ₹ Crore Cash & Cash Equivalent Return on Equity# Return on Capital Employed# 29.5% 20.7% 15.2% 794.0 270.0 311.9 33.6% 24.0% 18.8% FY22 FY23 H1FY24 FY22 FY23 H1FY24 FY22 FY23 H1FY24 # Return on Equity = PAT/Average Networth; Return on Capital Em
Slide 13: Operating Metrics Q2FY24
OPERATING METRICS Q2FY24 Strengthening our business Q2FY24 Q1FY24 Q2FY23 New Clients Added 29 22 20 Active Client during the Quarter 441 436 449 Client Base Top 5 31.5% 30.8% 27.8% Top 10 41.3% 41.0% 39.8% No. of Clients with Annual Billing > USD 1mn 67 60 56 Total Employee 5,598 5,592 5,810 • Offsh
Slide 14: Revenue Analysis Q2FY24 – Consolidated
REVENUE ANALYSIS Q2FY24 – CONSOLIDATED Balancing Our Portfolio Revenue by Market Region* Revenue by Contract Type 5.0% 4.1% 4.1% 8.8% 12.1% 10.9% 44.9% 41.0% 24.2% 49.1% 25.3% 28.4% 62.0% 58.5% 56.6% 50.9% 55.1% 59.0% Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 UK & Europe US ME ROW Time & Material Fi
Slide 15: Operational Performance: Revenue by Industry Segments
OPERATIONAL PERFORMANCE Revenue By Industry Segments Q2FY24 – Consolidated Q2FY24 43.6% 16.6% 12.5% 15.7% 11.6% Government & Education Health & Life Sciences Q1FY24 44.6% 14.6% 12.4% 17.0% 11.4% Retail/ Consumer Manufacturing & Technology Financial Services # Q2FY23 42.3% 14.9% 15.8% 15.7% 11.3% 0%
Slide 16: Operational Performance: Revenue by Service Line
OPERATIONAL PERFORMANCE Revenue By Service Line Q2FY24 – Consolidated Q2FY24 43.5% 30.5% 18.5% 7.5% Digital & Application Engineering Oracle Cloud & Enterprise Apps Q1FY24 44.8% 32.2% 18.3% 4.7% Digital Commerce & Experience Data, Automation and AI Q2FY23 42.2% 32.2% 19.5% 6.1% 0% 10% 20% 30% 40% 50
Slide 17: Key Wins for the Quarter
@ Mastek ® Trust. Value. Velocity KEY WINS FOR THE QUARTER
Slide 18: Key Wins: Government & Financial Services
KEY WINS FOR THE QUARTER Government & Financial Services UK & Europe UK & Europe Americas AMEA Client The Organization is part of the Cabinet The Customer is responsible for American investment management Office in the UK, that helps make digital managing and promoting Scotland's company offering wi
Slide 19: Key Wins: Healthcare
KEY WINS FOR THE QUARTER Healthcare Americas Americas Americas AMEA Client Among the largest integrated private The Company offers individual, family, Diversified health services and The Company provides ACO solutions to healthcare platforms in UAE and Oman, group, Medicare, and Medicaid health info
Slide 20: Key Wins: Retail & Manufacturing
KEY WINS FOR THE QUARTER Retail & Manufacturing UK & Europe UK & Europe Americas Americas Client UK-based company operating 250+ duty free shops of different luxury consumer Fortune 500 company specializing in UK's busiest international ferry port and brands on over 100 cruise ships globally, sellin
Slide 21: Acquisition Update
Mastek*@ Trust. Value. Velocity ACQUISITION UPDATE
Slide 22: Mastek Completes Acquisition of BizAnalytica
MASTEK COMPLETES ACQUISITION OF BIZANALYTICA Mastek completes acquisition of BizAnalytica, LLC - a data cloud & modernization specialist BizAnalytica, LLC acquired by Mastek Inc., a wholly owned subsidiary of Mastek Limited BizAnalytica, LLC consolidated with effect from August 2023 Investor Present
Slide 23: Strategic Rationale for BizAnalytica
STRATEGIC RATIONALE FOR BIZANALYTICA • 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 D
Slide 24: Strong Synergy Potential
STRONG SYNERGY POTENTIAL Strong Data Cloud Developing Data- Provide next Strengthens Vertical Potential to Capabilities on centric solutions generation capabilities in Retail position Mastek leading platforms complementary to Analytics Services & HLS, while adding services into like Snowflake, platf
Slide 25: Mastek & BizAnalytica: Progress in Building AI-Driven Enterprises
MASTEK & BIZANALYTICA PROGRESS IN BUILDING AI-DRIVEN ENTERPRISES • Global Digital Engineering & Cloud Transformation Services provider • Extensive Data Modernization • Strong presence in US, UK, Services expertise with depth Europe, 40+ countries across Data Cloud Platforms – • 5600+ resources, Glob
Slide 26: BizAnalytica Is Now Mastek's Data Cloud and Modernization Business
BIZANALYTICA IS NOW MASTEK’S DATA CLOUD AND MODERNIZATION BUSINESS Mastek Snowflake partnership tier upgraded to “Premier” tier Investor Presentation | Earning Deck Company Confidential © Mastek 2023. All rights reserved | 26
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: Non-Linear Impact – Platforms and IP
NON-LINEAR IMPACT – PLATFORMS AND IP Connected Enterprise Enterprise Workforce Warehouse 360 Intellectual Property Service Fraud Analytics Scheduler (EWS) - aaS (WH360) - aaS Governance (with Volteo Edge) • Launched multi- • Launched multi-tenanted • Healthcare and Life • Manage Filing and • Financi
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