Mastek Limited · NSE:MASTEK
Mastek — Q4 FY2020 Earnings Presentation
32 slides from Mastek's earnings presentation, Jun 14, 2020
Slide 1: Performance Overview: Q4 FY'20
Mastek Investor Presentation Performance Overview: Q4 FY’20 14 June 2020 Presented by: John Owen | Group CEO Abhishek Singh | Group CFO © Copyright Mastek, 2020. All Rights Reserved
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements concerning our future growth prospects which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include,
Slide 3: Agenda
Agenda • Financial performance ▪ Quarterly – Q4’FY20 ▪ Full Year – FY’20 • Mastek & Evosys • Operational performance • Business Updates • Annexures 1. Mastek Organic Performance 2. Evosys Group Insight • Questions & answers © Copyright Mastek, 2020. All Rights Reserved 3
Slide 4: Financial performance
Financial performance © Copyright Mastek, 2020. All Rights Reserved
Slide 5: Highlights of the Quarter
Highlights of the Quarter • Mastek UK ranked as “29th fastest-growing Indian companies in UK” in CII-GT India Meets Britain 2020 tracker report. This evidences strong presence of Mastek in UK • Evosys UK has been recognized and ranked at the impressive 4th position in the same tracker report, reaffi
Slide 6: Financial Summary Q4 FY'20
Financial Summary Q4 FY’20 Key Performance Metrics (Figures in Rs Crore) Particulars Metrics Q4FY20 Q3FY20 QoQ Growth Q4FY19 YoY Growth Total Income from operations* 336.7 243.7 38.2% 267.1 26.0% Revenue Crore) (In Rs Other Income 17.5 9.5 83.3% 6.9 152.5% Total Income 354.2 253.2 39.9% 274.0 29.2%
Slide 7: Financial Performance Q4 FY'20 – Consolidated
Financial Performance Q4 FY’20 – Consolidated Comparison: Quarter-on- Quarter (Figures in Rs Crore) Operating Revenue Operating EBITDA & Margin (%) 17.3% 38.2% Q-o-Q 336.7 13.2% 13.8% 267.1 36.1% Q-o-Q (CC) 58.2 243.7 26.0% Y-o-Y 73.1% Q-o-Q 35.3 33.6 23.4% Y-o-Y (CC) 65.0% Y-o-Y Q4 FY19 Q3 FY20 Q4
Slide 8: Financial Summary FY'20
Financial Summary FY’20 Key Performance Metrics (Figures in Rs Crore) Particulars Metrics FY20 FY19 YoY Growth Total Income from operations* 1,071.5 1,033.2 3.7% Revenue Crore) (In Rs Other Income 41.3 24.8 66.7% Total Income 1,112.8 1,058.0 5.2% Op. EBITDA 155.4 131.5 18.1% (In Rs Crore) Margins To
Slide 9: Financial Performance FY'20 - Consolidated
Financial Performance FY’20 - Consolidated Comparison: Year – on - Year (Figures in Rs Crore) Operating Revenue Operating EBITDA & Margin (%) 14.5% 12.7% 155.4 1071.5 1033.2 131.5 3.7% Y-o-Y 4.0% Y-o-Y (CC) 18.1% Y-o-Y FY19 FY20 FY19 FY20 PAT & Margin (%) Free Cash Flow FCF to PAT: 10.2% 147.6% 9.6%
Slide 10: Balance Sheet Metrics FY'20 - Consolidated
Balance Sheet Metrics FY’20 - Consolidated Comparison: Year – on - Year (Figures in Rs Crore) Cash & Cash Equivalent* Total Net worth* Net Cash: 927.5 Rs 81.0 cr Net Cash: 716.4 Rs 174.9 cr 414.7 29.5% Y-o-Y 244.5 FY19 FY20 69.6% Y-o-Y FY19 FY20 Return on Equity*# Return on Capital Employed*# 16.0%
Slide 11: Mastek & Evosys
Mastek & Evosys © Copyright Mastek, 2020. All Rights Reserved
Slide 12: Gartner Magic Quadrant (2019-2020 Comparison)
Gartner Magic Quadrant (2019-2020 Comparison) 2019* 2020* ▪ Improvement in ranking of Evosys year on year ▪ $ 20 Billion+ in services & implementation revenue opportunity around Oracle annually ▪ Existing players in ‘Leaders’ quadrant bag majority of the transformational opportunity using their inte
Slide 13: Opportunity: Cross-sell and Co-sell
Opportunity: Cross-sell and Co-sell 144 active clients 495 active clients 500+ clients globally 1,300+ clients globally Evosys Services Mastek Services ▪ Oracle Cloud Application ▪ Application Development Implementation ▪ Digital Commerce ▪ Oracle On Premise ▪ Application Support & Maintenance Imple
Slide 14: Operational performance
Operational performance © Copyright Mastek, 2020. All Rights Reserved
Slide 15: Operating Metrics Q4 FY'20
Operating Metrics Q4 FY’20 Strengthening our business Q4FY20 Particulars Metrics Q3FY20 Q4FY19 Consolidated Mastek Organic New Clients Added 24 11 9 7 Active Client (immediately preceding 12 months) 436 144 143 157 Client Base Top 5 35.8% 48.2% 43.3% 41.7% Top 10 50.9% 68.6% 63.4% 58.8% Total Employ
Slide 16: Revenue Analysis Q4 FY'20 - Consolidated
Revenue Analysis Q4 FY’20 - Consolidated Balancing our portfolio Revenue by Market Region* Revenue by Industry Segment 1.5% 1.0% 4.7% 5.4% 5.4% 22.0% 23.1% 7.0% 14.5% 17.9% 17.3% 19.2% 14.1% 9.8% 11.4% 17.0% 33.9% 33.5% 76.5% 75.9% 22.2% 69.1% 33.0% 32.4% 32.1% Q4 FY19 Q3 FY20 Q4 FY20 Q4 FY19 Q3 FY2
Slide 17: Revenue Analysis Q4 FY'20 - Consolidated
Revenue Analysis Q4 FY’20 - Consolidated Revenue by Service line 2.3% 1.0% 0.8% 2.7% 3.6% 3.9% 4.6% 7.4% Agile Consulting 9.4% 12.9% 19.2% Assurance & Testing 20.4% 13.2% BI & Analytics 22.3% 21.6% 25.8% Application Support & Maintenance Digital Commerce Oracle Suite & Cloud 46.4% Migration 42.3% 40
Slide 18: Business Updates
Business Updates © Copyright Mastek, 2020. All Rights Reserved
Slide 19: Evosys Acquisition Update
Evosys Acquisition Update Announcement on 8th February 2020 Post Closing •Board approved acquisition •Sales & Marketing teams working together •Mastek Arabia FZ LLC incorporated Regulatory •Process of integration for specific business functions in progress as planned Integration •Consideration of Rs
Slide 20: Covid Updates
Covid Updates COVID-19 •100% employees moved to work from home across geographies •IT infrastructure arranged in short period of time to enable uninterrupted delivery of services to our customers •Desktop delivered with secured environment to employees residence to abide by customer security require
Slide 21: Shareholding Pattern of Mastek Limited
Shareholding Pattern of Mastek Limited Q4’FY20 (As on 31 March 2020) Post approval of Scheme of Arrangement Others 33.8% Others Promoters Promoters (including 38.4% 45.1% Evosys shareholders) 43.6% FPIs 6.2% MFs/ MFs/ AIFs FPIs AIFs 14.9% 5.3% 12.7% © Copyright Mastek, 2020. All Rights Reserved 21
Slide 22: Thank you
Thank you © Copyright Mastek, 2020. All Rights Reserved
Slide 23: Annexure 1 - Performance of Mastek Organic
Annexure - 1 Performance of Mastek Organic © Copyright Mastek, 2020. All Rights Reserved
Slide 24: Financial Performance Q4 and FY'20 – Mastek Organic
Financial Performance Q4 and FY’20 – Mastek Organic Comparison: Quarter-on-Quarter and Year-on-Year (Figures in Rs Crore) Operating Revenue Operating Revenue 267.1 2.5% Q-o-Q 1,033.2 249.7 243.7 1.2% Q-o-Q (CC) 984.5 6.5% Y-o-Y 4.7% Y-o-Y 8.0% Y-o-Y (CC) 4.1 Y-o-Y (CC) Q4 FY19 Q3 FY20 Q4 FY20 FY19 F
Slide 25: Annexure 2 - Insights into Evosys Group
Annexure - 2 Insights into Evosys Group © Copyright Mastek, 2020. All Rights Reserved
Slide 26: Business Overview
Business Overview • Founded in 2006 by Umang Nahata and Rakesh Raman • Leading & fastest-growing “Oracle Platinum Cloud Premier Partner” • Has proven expertise in implementation of all Oracle solutions including ERP, HCM, SCM, BI and other EBS suites • Headquarter in Ahmedabad; strong presence in AP
Slide 27: One of the Top SI for Oracle Cloud Applications
One of the Top SI for Oracle Cloud Applications Global and Cross Pillar Value Based Delivery • 1000+ Global Customers with presences Deliver Measurable Outcome. in 30+ countries. • Expertise in all Oracle Cloud Pillars Evosys Glide (On Prem to Cloud) Verticalized Approach Oracle Global Transformatio
Slide 28: Evosys Services and Practices
Evosys Services and Practices Services Practice Top Industries • Oracle Cloud Application Implementation • Enterprise Resource Planning • Public Sector – ERP | HCM | SCM | EPM | CX | • Supply Chain Management • Healthcare PAAS • Human Capital Management • Financial Services • Oracle On Premise Imple
Slide 29: Our ERP, SCM Extensions/Solutions
Our ERP, SCM Extensions/Solutions Evo Bank Facility Point of Sales System Evo Subcontract Catch Weight Sales Management Management Solution Solution Evo Van Sales Solution Evo Mobile Supply Chain Online Freight Calculation SMART Desk- Service Solution Request Mgmt. Multi-dimensional Regression & Dat
Slide 30: Prebuild Accelerators for On Premise to Cloud Transformation
Prebuild Accelerators for On Premise to Cloud Transformation 79 clients 5 clients 6 clients Assessment of Support and Insights to build Advisory services Data configuration & enhancement expected ROI for transformation Migration customizations services Accelerators © Copyright Mastek, 2020. All Righ
Slide 31: Awards and Recognition
Awards and Recognition © Copyright Mastek, 2020. All Rights Reserved
Slide 32: Questions & Answers
Questions & Answers © Copyright Mastek, 2020. All Rights Reserved