Mastek Limited · NSE:MASTEK
Mastek — Q4 FY2023 Earnings Presentation
30 slides from Mastek's earnings presentation, Apr 19, 2023
Slide 1: Investor Presentation Q4FY23
INVESTOR PRESENTATION Q4FY23 19 April 2023 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 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 Q4FY23
HIGHLIGHTS OF Q4FY23 Revenue Growth Operating EBITDA (Q4) 12month Order backlog Year-on-Year 22.0% Margin 17.7% Year-on-Year Growth (CC) 17.2% Q4FY23 revenue at Q4FY23 Op. EBITDA 12 Months Order backlog at ₹ 709.2 Crore ₹ 125.5 Crore ₹ 1,794.1 Crore Revenue grew by Op. EBITDA grew by 12 months order
Slide 5: Key Achievements & Recognitions
KEY ACHIEVEMENTS & RECOGNITIONS Won ISG Digital Mastek Earned 2023 Mastek Limited Mastek named Case Study announced ‘Great Place to achieves CMMI in Dow Jones Awards 2022 for Strategic Work’ Level 5 Dev 2.0 Sustainability Healthcare & Partnership Certification in India and UK Indices (DJSI) Life Sci
Slide 6: Key Achievements & Recognitions – ISG Booming 15
KEY ACHIEVEMENTS & RECOGNITIONS – ISG BOOMING 15 Mastek named in ISG Top 15 Sourcing Standout Globally under 'Booming 15' category based on annual contract value (ACV) won over the last 12 months, according to the 1Q 2023 Global ISG Index™ Investor Presentation | Earning Deck Company Confidential ©
Slide 7: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE
Slide 8: 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% 17.2% 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% 200 9.6% 9.7% 10.3% 5.0% 100 248 244 244 337 386 410 443
Slide 9: Consolidated Financial Highlights Q4FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS Q4FY23 Comparison: Quarter-on-quarter & Year-on-year (Figures In ₹ Crore) Operating Operating EBITDA PAT & 12 Months Revenue & Margin (%) Margin (%) Order Backlog 20.8% 14.7% 17.3% 17.7% 10.1% 10.2% 1,469.1 1,705.8 1,794.1 581.5 658.7 709.2 120.7 113.7 125.5 88.2 67
Slide 10: Consolidated Financial Summary – Q4FY23
CONSOLIDATED FINANCIAL SUMMARY – Q4FY23 QoQ YoY Key Performance Metrics Q4FY23 Q3FY23 Q4FY22 Growth Growth Revenue from Operations ($mn) $86.3 $80.1 $77.2 5.3% (CC) 19.7% (CC) Revenue from Operations (₹ Crore) 709.2 658.7 581.5 7.7% 22.0% Revenue Other Income (₹ Crore) (0.4) 6.0 17.9 (106.8)% (102.3
Slide 11: Consolidated Financial Summary – FY23
CONSOLIDATED FINANCIAL SUMMARY – FY23 YoY Key Performance Metrics FY23 FY22 Growth Revenue from Operations ($mn) $318.1 $293.0 18.5% (CC) Revenue from Operations (₹ Crore) 2,563.4 2,183.8 17.4% Revenue Other Income (₹ Crore) 38.3 36.1 6.1% Total Income (₹ Crore) 2,601.7 2,219.9 17.2% Op. EBITDA 455.
Slide 12: Balance Sheet Metrics FY23 – Consolidated
BALANCE SHEET METRICS FY23 – CONSOLIDATED Figures In ₹ Crore Cash & Cash Equivalent Return on Equity# Return on Capital Employed# 25.6% 29.5% 20.7% 848.9 794.0 270.0 27.3% 33.6% 24.0% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 The Cash & Cash Equivalents have declined during the year as a result o
Slide 13: Operating Metrics Q4FY23
OPERATING METRICS Q4FY23 Strengthening our business Q4FY23 Q3FY23 Q4FY22 New Clients Added 28 31 49 Active Client during the Quarter 464 444 450 Client Base Top 5 29.6% 28.1% 30.1% Top 10 40.6% 39.2% 43.1% No. of Clients with Annual Billing > USD 1mn 61 59 47 Total Employee 5,622 5,687 4,977 • Offsh
Slide 14: Revenue Analysis Q4FY23 – Consolidated
REVENUE ANALYSIS Q4FY23 – CONSOLIDATED Balancing Our Portfolio Revenue by Market Region* Revenue by Contract Type 4.9% 4.1% 4.3% 8.2% 9.2% 9.3% 18.4% 48.2% 46.5% 44.1% 27.8% 26.0% 68.5% 58.9% 60.4% 51.8% 53.5% 55.9% Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 UK & Europe US ME ROW Time & Material Fixe
Slide 15: Operational Performance: Revenue by Industry Segments
OPERATIONAL PERFORMANCE Revenue By Industry Segments* Q4FY23 – Consolidated Q4FY23 43.0% 16.0% 13.1% 15.5% 12.4% Government & Education Health & Life Sciences ** Q3FY23 41.4% 16.2% 14.1% 16.1% 12.2% Retail/ Consumer Manufacturing & Technology Financial Services # Q4FY22 38.2% 22.8% 14.5% 12.9% 11.6%
Slide 16: Operational Performance: Revenue by Practice Line
OPERATIONAL PERFORMANCE Revenue By Practice Line* Q4FY23 – Consolidated Q4FY23 44.7% 28.9% 19.5% 6.9% Digital & Application Engineering Oracle Cloud & Enterprise Apps Q3FY23 43.5% 29.2% 21.7% 5.6% Digital Commerce & Experience Data, Automation and AI Q4FY22 40.8% 35.5% 11.2% 12.5% 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 for the Quarter – Government
KEY WINS FOR THE QUARTER Government UK & Europe UK & Europe Americas AMEA Client A local authority of London responsible America’s largest township admeasuring for setting council tax, education, over 140 sq. miles and encompassing A local government authority in A ministerial department responsible
Slide 19: Key Wins for the Quarter – Manufacturing & Utilities
KEY WINS FOR THE QUARTER Manufacturing & Utilities UK & Europe Americas AMEA Client A worldwide manufacturer of pressure sensitive Australian multi-utility joint venture company, One of the largest water utility provider in UK film products or applications that include indoor providing utility servi
Slide 20: Key Wins for the Quarter – Financial Services & Retail
KEY WINS FOR THE QUARTER Financial Services & Retail Americas Americas AMEA Client No.1 toilet parts brand in the world, selling over A multinational corporation specializing in 100 million toilet products annually and largest payment card services headquartered in New York One of the leading automo
Slide 21: Key Wins for the Quarter – Healthcare
KEY WINS FOR THE QUARTER Healthcare Americas Americas AMEA Client A leading life sciences solutions provider offering reliable cold-chain sample management solutions A national provider of in-home healthcare services A Territory Eye specialist hospital in KSA and genomic services across areas such a
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 (Banner Health)
STRENGTHENING HEALTHCARE PRESENCE (BANNER HEALTH) ICP/ABM Targeted payers & payviders – technology leadership, org decision makers.. and their mothers. Targeted key Salesforce contacts. Leveraged sales & leadership to maximize outreach. Collaborated w/Corporate to extend exposure to their contact li
Slide 25: Strategic Priorities
Mastek*@ Trust. Value. Velocity STRATEGIC PRIOIRTIES
Slide 26: 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 27: Strategic Big Bets FY'24
STRATEGIC BIG BETS FY’24 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 Pres
Slide 28: 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 29: Volteo Edge Case Study
VOLTEO EDGE CASE STUDY Volteo Helps T.D. Williamson Reduce Equipment Maintenance Costs The engagement is motivated by a shared goal to enable a fully configured IoT sensor-based data collection capability for the isolation segment. The resulting capability will enable TDW to streamline operations an
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