Mastek Limited · NSE:MASTEK
Mastek — Q2 FY2023 Earnings Presentation
29 slides from Mastek's earnings presentation, Oct 20, 2022
Slide 1: Investor Presentation Q2FY23
INVESTOR PRESENTATION Q2FY23 20 October 2022 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 Highlights Financial & Key Wins for Acquisition Vision 2025 & of the Operational the Quarter Update Strategic Quarter Performance Priorities Investor Presentation | Earning Deck Company Confidential © Mastek 2022. All rights reserved | 2
Slide 3: Highlights of the Quarter
Mastek*@ Trust. Value. Velocity HIGHLIGHTS OF THE QUARTER
Slide 4: Highlights of Q2FY23
HIGHLIGHTS OF Q2FY23 Revenue Growth Op. EBITDA Fortune 1000 Clients Year-on-Year (CC) 20.4% Margin 17.2% For Q2FY23 27 Q2FY23 revenue at Q2FY23 PAT 12 Months Order backlog at Mastek was one of the few ₹ 625.3 Crore ₹ 86.2 Crore ₹ 1,522.0 Crore listed companies within top 1000 listed companies in Rev
Slide 5: Key Achievements
KEY ACHIEVEMENTS Won Major UK Government Multi Year Frameworks Procured By The Crown Commercial Service G-Cloud Technology Data and Analytics Digital Specialists and 13 Framework RM1557 Services 3 Framework Programmes and DOS 5 Framework RM6100 RM6195 RM6263 RM1043.7 CLOUD & Complex Large Critical E
Slide 6: Key Achievements - Recognitions
KEY ACHIEVEMENTS - RECOGNITIONS Recognized as Disruptor in Recognition by Recognized in ISG’s Booming 15 – Avasant’s RadarView for Oracle Constellation Americas – Q3 2022 Cloud ERP Services Mastek has been recognized in the latest Constellation ShortList™ for Digital Transformation Services (DTX) In
Slide 7: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 700 23.5% 25.0% 21.9% 21.8% 21.1% 21.1% 21.1% 20.8% 600 19.2% 17.2% 20.0% 17.3% 17.6% 500 13.3% 13.8% 15.0% 400 15.7% 15.6% 15.4% 11.8% 15.1% 15.0% 14.7% 14.3% 14.2% 13.6% 300 11.6% 11.0% 10.0% 9.6% 200 9.7% 10.3% 5.0% 100 248 244 244 337 386 410 443 483 517 534 552 582 570 625
Slide 9: Consolidated Financial Summary – Q2FY23
CONSOLIDATED FINANCIAL SUMMARY – Q2FY23 QoQ YoY Key Performance Metrics Q2FY23 Q1FY23 Q2FY22 Growth Growth Revenue from Operations ($mn) $78.1 $73.6 $72.0 10.7% (CC) 20.4% (CC) Revenue from Operations (₹ Crore) 625.3 570.3 533.9 9.7% 17.1% Revenue Other Income (₹ Crore) 6.9 25.8 7.7 (73.2)% (10.4)%
Slide 10: Consolidated Financial Summary – H1FY23
CONSOLIDATED FINANCIAL SUMMARY – H1FY23 YoY Key Performance Metrics H1FY23 H1FY22 Growth Revenue from Operations ($mn) $ 151.7 $142.2 17.0% (CC) Revenue from Operations (₹ Crore) 1,195.6 1,050.4 13.8% Revenue Other Income (₹ Crore) 32.7 12.4 163.3% Total Income (₹ Crore) 1,228.2 1,062.8 15.6% Op. EB
Slide 11: Consolidated Financial Highlights Q2FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2FY23 Comparison: Quarter-on-quarter & Year-on-year (Figures In ₹ Crore) Operating Operating EBITDA PAT & 12 Months Revenue & Margin (%) Margin (%) Order Backlog 15.1% 14.2% 13.6% 21.1% 19.2% 17.2% 1,154.3 1,509.3 1,522.0 112.8 109.2 107.4 81.5 84.4 86.2 533.9 570.
Slide 12: Balance Sheet Metrics H1FY23 – Consolidated
BALANCE SHEET METRICS H1FY23 – CONSOLIDATED Figures In ₹ Crore Cash & Cash Equivalent Return on Equity# Return on Capital Employed# 25.6% 29.5% 24.7% 848.9 794.0 351.6 27.3% 33.6% 27.8% FY21 FY22 H1FY23 FY21 FY22 H1FY23 FY21 FY22 H1FY23 # Return on Equity = PAT/Average Networth; Return on Capital Em
Slide 13: Operating Metrics Q2FY23
OPERATING METRICS Q2FY23 Strengthening our business Q2FY23 Q1FY23 Q2FY22 New Clients Added 20 33 45 Active Client during the Quarter 449 402 447 Client Base Top 5 27.8% 28.7% 30.8% Top 10 39.8% 41.1% 45.3% Total Employee 5,810 5,553 4,510 • Offshore 4,283 4,208 3,411 Employee • Onsite 1,527 1,345 1,
Slide 14: Revenue Analysis Q2FY23 – Consolidated
REVENUE ANALYSIS Q2FY23 – CONSOLIDATED Balancing Our Portfolio Revenue by Market Region* Revenue by Contract Type 5.7% 4.9% 5.0% 9.0% 9.2% 8.8% 18.2% 18.8% 24.2% 45.7% 49.1% 54.5% 67.1% 67.1% 62.0% 54.3% 45.5% 50.9% Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 UK & Europe US ME ROW Time & Material Fixe
Slide 15: Operational Performance: Revenue by Industry Segments
OPERATIONAL PERFORMANCE Revenue By Industry Segments* Q2FY23 – Consolidated Q2FY23 42.3% 14.9% 15.8% 15.7% 11.3% Government & Education Health & Life Sciences ** Q1FY23 40.3% 19.4% 15.5% 13.6% 11.2% Retail/ Consumer Manufacturing & Technology Financial Services # Q2FY22 37.5% 21.2% 16.1% 13.7% 11.5%
Slide 16: Operational Performance: Revenue by Practice Line
OPERATIONAL PERFORMANCE Revenue By Practice Line* Q2FY23 – Consolidated Q2FY23 42.2% 32.2% 19.5% 6.1% Digital & Application Engineering Oracle Cloud & Enterprise Apps Q1FY23 42.8% 37.8% 10.8% 8.6% Digital Commerce & Experience Data, Automation and AI Q2FY22 48.0% 31.7% 12.5% 7.8% 0% 10% 20% 30% 40%
Slide 17: Key Wins for the Quarter
@ Mastek ®@ Trust. Value. Velocity KEY WINS FOR THE QUARTER
Slide 18: Key Wins: Government & Education
KEY WINS FOR THE QUARTER Government & Education UK & Europe UK & Europe UK & Europe Americas Client Largest university devoted to the state's A UK department responsible for A local Council delivering services like public health, law & human services UK's ministerial department responsible implement
Slide 19: Key Wins: Health and Lifesciences
KEY WINS FOR THE QUARTER Health and Lifesciences UK & Europe Americas Americas Client The national provider of information, data and IT A US based life sciences leader in Dental and Spine One of the largest, secular non-profit health systems for commissioners, analysts and clinicians market which ma
Slide 20: Key Wins: Financial Services
KEY WINS FOR THE QUARTER Financial Services UK & Europe AMEA AMEA Client KSA based bank that empowers social One of the largest manpower, environmental and One of the largest home credit providers in the UK development of individuals and families talent solutions providers in the UAE About the deal
Slide 21: Key Wins: Retail/Consumer/Manufacturing
KEY WINS FOR THE QUARTER Retail/ Consumer/ Manufacturing Americas UK & Europe Americas Americas Client One of the largest luggage An American multinational food manufacturers & retailer with a Leading American company that manufacturing company offering an 4th largest retailer in the UK heritage of
Slide 22: Acquisition Update
Mastek*@ Trust. Value. Velocity ACQUISITION UPDATE
Slide 23: 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 24: Strengthening Healthcare Presence
STRENGTHENING HEALTHCARE PRESENCE 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_source=linkedin&hss
Slide 25: 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 26: Vision 2025 Strategy & Strategic Priorities
VISION 2025 STRATEGY & STRATEGIC PRIOIRTIES
Slide 27: Our Collective Vision and Goals for FY 25-26
OUR COLLECTIVE VISION AND GOALS FOR FY 25-26 Trusted and Turnkey Digital Engineering & Cloud Transformation Partner Be at $1Bn in early part of 2nd half of the decade MISSION We Enable Success for our Clients, Employees, & Societies we live in Top 3 in Growth among mid-cap IT Services APPROACH Trust
Slide 28: Mastek Strategic Priorities for FY 22-23
MASTEK STRATEGIC PRIORITIES FOR FY 22-23 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 Pa
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