Mastek Limited · NSE:MASTEK
Mastek — Q1 FY2021 Earnings Presentation
39 slides from Mastek's earnings presentation, Jul 30, 2020
Slide 1: Exchange filing cover letter
Mastek Limited T +91 22 6722 4200 #106,107 SDF-IV Seepz, Andheri (East), F +91 22 6695 1331 Mumbai 400096, Maharashtra, India W www.mastek.com SEC/31/2020-21 July 30, 2020 Listing Department Listing Department BSE Limited The National Stock Exchange of India Limited 25th Floor, Phiroze Jeejeebhoy To
Slide 2: Press Release | Q1FY21
Mastek*@ Press Release | Q1IFY21
Slide 3: Q1FY21 Total Income at Rs 402.8 crore; up 59.4% Y-o-Y
For Immediate Release Q1FY21 Total Income at Rs 402.8 crore; up by 59.4% Y‐o‐Y basis Crossed $50m revenue mark for Q1FY21 Constant Currency Revenue grew 46.1% Y‐o‐Y Operating EBITDA Margin of 17.6%; up 436 bps Y‐o‐Y Added 48 new clients in quarter Mumbai, India – 29 July, 2020: Mastek, a glo
Slide 4: Review of Consolidated Financial Performance for Quarter ended 30th June 2020
For Immediate Release Review of the Consolidated Financial Performance for Quarter ended 30th June 2020: Figures in $m Q1FY21 Q4FY20 Q‐o‐Q Growth Q1FY20 Y‐o‐Y Growth Revenue from $50.8 $46.3 12.1% (CC) $35.5 46.1% (CC) Operations Q1FY21 Q4FY20 Q‐o‐Q Q1FY20 Y‐o‐Y Figures in Rs Crore Growth Growth Tot
Slide 5: Cash Balance and Awards & Accolades
For Immediate Release Cash Balance: The total cash, cash equivalents and fair value of Mutual Funds stood at Rs 458.2 crore as on 30th June, 2020 as compared to Rs 414.7 crore at the end of 31st March, 2020. Net Cash balance (after adjusting for debts) stood at Rs 173.0 crore as on 30th June, 2020
Slide 6: UK, US market and Oracle cloud migration outlook
For Immediate Release – UK Market • Government and Healthcare experiencing robust opportunity multiple frameworks to bid for. Opportunities with new‐logos within Government Space being chased; good pipeline. • Private Sector continues to be soft in demand generation. Budgets being reoriented to driv
Slide 7: About Mastek
For Immediate Release of deliverables while working from home. Employees are well‐engaged with focus on their health and wellbeing. About Mastek Mastek (NSE: MASTEK; BSE: 523704), is an enterprise digital transformation specialist that engineers excellence for customers in the UK, US, and India. It
Slide 8: Investor contact and forward-looking note
For Immediate Release Shareholders may also contact Mastek via email at Investor_grievances@mastek.com, which has been specifically created for the redressal of investor grievances. You may also contact the Investor Relations team by email at investor.relations@mastek.com. Note: Except for the histo
Slide 9: Thank You
For Immediate Release T Thank You _________________________________________________________________________________ 8 of 8
Slide 10: Investor Presentation July 2020
29 July 2020 The difference between what is. And what could be. Investor Presentation Quarter ended June 30th, 2020 Presented by: John Owen | Group CEO Abhishek Singh | Group CFO
Slide 11: 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 12: Agenda
Agenda 01 Highlights of the Quarter 02 Financial Performance 03 Operational Performance 04 Evosys Advantage 05 Acquisition and Covid Updates © Copyright Mastek, 2020. All Rights Reserved 3
Slide 13: Highlights of the Quarter
Highlights of the Quarter
Slide 14: Highlights of the Quarter
Highlights of the Quarter Mastek crossed $50m revenue mark in the quarter Operating EBITDA margin of 17.6% in Q1FY21 Added 48 new customers during the quarter Repaid loan of $6.0m; 14% of overall borrowing of $43.6m Mastek and Evosys first contract under “Joint Go-To Market strategy” signe
Slide 15: Highlights of the Quarter
Highlights of the Quarter Monetization of Majesco USA stake Mastek ranked 3rd in the Tech Mastek awarded the distinction Majesco US has decided to sell its MarketView’s “Monthly Digital of UiPath "elite" partner company to a private equity, Marketplace Dashboards” for Only 3 partners ranked
Slide 16: Financial Performance
Financial Performance
Slide 17: Consistent Financial Performance
Consistent Financial Performance Revenue from Operations Operating EBITDA Margin PAT Margin 17.3% 17.6% 13.8% 12.8% 13.2% 13.3% 12.3% 12.4% 12.7% 12.1% 12.0% 12.2% 11.8% 9.3% 11.6% 11.0% 10.0% 10.3% 9.4% 9.8% 9.6% 9.7% 9.1% 8.6% 8.6% 8.4% 7.8% 5.8% Q4FY17 Q1FY18 Q3FY18 Q1FY19 Q3FY19 Q2FY20 Q4FY20 Q2
Slide 18: Financial Summary - Q1 FY'21
Financial Summary - Q1 FY’21 Key Performance Metrics Growth Growth Q1FY21 Q4FY20 Q1FY20 QoQ YoY Revenue from Operations* ($m) $50.8 $46.3 $35.5 12.1% (CC) 46.1% (CC) Revenue from Operations* (Rs Crore) 386.1 336.7 247.5 14.7% 56% Revenue Other Income (Rs Crore) 16.7 17.5 5.1 (4.6%) 225.5% Total Inco
Slide 19: Consolidated Financial Highlights Q1 FY'21
Consolidated Financial Highlights Q1 FY’21 Comparison: Quarter-on-Quarter and Year-on-Year (Figures in Rs Crore) Operating Revenue Operating EBITDA & Margin (%) 17.3% 17.6% 14.7% QoQ 17.0% QoQ 386.1 68.1 336.7 12.1% QoQ (cc) 13.3% 58.2 107.2% YoY 247.5 56.0% YoY 32.9 46.1% YoY (cc) Q1FY20 Q4 FY20 Q1
Slide 20: Balance Sheet Metrics Q1 FY'21 - Consolidated
Balance Sheet Metrics Q1 FY’21 - Consolidated Strengthening the Balance Sheet Free Cash Flow* Cash & Cash Equivalent* FCF to PAT Net Cash 168.0 458.2 FY19: 59.4% 414.7 FY19: Rs 174.9 cr 98.8 FY20: 147.6% 244.5 FY20: 81.0 cr 60.2 Q1FY21: 212.1% Q1FY21: 173.0 cr FY19 FY20 Q1 FY21 FY19 FY20 Q1 FY21 Ret
Slide 21: Operational Performance
Operational Performance
Slide 22: Operating Metrics Q1 FY'21
Operating Metrics Q1 FY’21 Strengthening our business Q1FY21 Q4FY20 Q1FY20 New Clients Added 48 24 9 Active Client (immediately preceding 12 months) 504 436 154 Client Base Top 5 34.5% 35.8% 40.3% Top 10 48.1% 50.9% 57.7% Total Employee 3,321 3,404 2,035 - Offshore 2,227 2,229 1,257 Employee - Onsit
Slide 23: Revenue Analysis Q1 FY'21 - Consolidated
Revenue Analysis Q1 FY’21 - Consolidated Balancing our portfolio Revenue by Market Region* Revenue by Industry Segment Q1 FY21 65.3% 17.1% 14.1% 3.5% Q1 FY21 33.6% 17.7% 19.9% 12.8% 16.0% Q4 FY20 69.1% 19.2% 7.0% 4.7% Q4 FY20 32.1% 22.2% 17.0% 14.1% 14.5% Q1 FY20 30.7% 37.4% 9.7% 16.5% 5.7% Q1 FY20
Slide 24: Revenue By Service Line Q1 FY'21
Revenue By Service Line Q1 FY’21 – Consolidated 1.7% 0.8% 1.1% 3.7% 2.7% 4.6% 1.8% Agile Consulting 11.0% 3.0% 12.9% 7.6% 18.1% Assurance & Testing 11.1% 13.2% BI & Analytics 25.2% 25.8% 34.7% Application Support & Maintenance 40.3% Digital Commerce 40.0% 40.7% Oracle Suite & Cloud Migration Q 1 F Y
Slide 25: Evosys Advantage
Evosys Advantage
Slide 26: Evosys - One of the Top SI for Oracle Cloud Applications
Evosys - One of the Top SI for Oracle Cloud Applications Global and Cross Pillar Value Based Delivery • 1000+ Global Customers with Deliver Measurable presences in 30+ countries. Outcome. • Expertise in all Oracle Cloud Pillars Verticalized Approach Evosys Glide (On Prem to Cloud) Oracle Global Vert
Slide 27: Prebuild Accelerators for On Premise to Cloud Transformation
Prebuild Accelerators for On Premise to Cloud Transformation 79 clients 5 clients 6 clients Assessment of Insights to build Advisory services for Data Migration Support and configuration & expected ROI transformation enhancement customizations services Accelerators © Copyright Mastek, 2020. All Righ
Slide 28: Evosys - ERP, SCM Extensions/Solutions
Evosys - ERP, SCM Extensions/Solutions Evo Bank Facility Point of Sales System Catch Weight Sales Evo Subcontract Management Solution Solution Management Evo Van Sales Solution Evo Mobile Supply SMART Desk- Service Online Freight Chain Solution Request Mgmt. Calculation Multi-dimensional Regression
Slide 29: Oracle named a Magic Quadrant Leader (Oracle ERP Cloud)
Oracle named a Magic Quadrant Leader (Oracle ERP Cloud) Magic Quadrant provides visibility into an enterprise’s CHALLENGERS LEADERS financial position through automation and process support Gartner Names Oracle (Oracle ERP Cloud) a Magic Quadrant Leader Market for cloud suites will continue to
Slide 30: Oracle Named as a Magic Quadrant Leader
Oracle Named as a Magic Quadrant Leader Magic Quadrant for Cloud ERP for Product-Centric Magic Quadrant for Cloud Core Financial Management Enterprises* Suites for Midsize, Large and Global Enterprises* CHALLENGERS LEADERS CHALLENGERS LEADERS NICHE PLAYERS VISIONARIES NICHE PLAYERS VISIONARIES *Sour
Slide 31: Evosys Amongst Top Leaders for Oracle Cloud Application Services
Evosys Amongst Top Leaders for Oracle Cloud Application Services For 2 consecutive years Improvement in ranking of Evosys year on year 2019* 2020* $20 Billion+ in services & implementation revenue CHALLENGERS LEADERS CHALLENGERS LEADERS opportunity around Oracle annually Existing players in ‘L
Slide 32: Advantages of Evosys Acquisition
Advantages of EVOSYS Acquisition Fast Growth High Profitability Oracle Cloud ERP/HCM is growing @ 30%+ High EBIDTA business Oracle the leader in this segment as stated by Gartner in Accelerating Client Acquisition its various reports Set of 1,300 strong serviced customer-base globally; Evo
Slide 33: Cross-Sell Opportunity
Cross-Sell Opportunity Mastek Services Evosys Services Application Development Oracle Cloud Application Digital Commerce Implementation Application Support & Oracle On Premise Maintenance Implementations and Upgrade BI & Analytics Oracle Application Support Agile Consulting Oracle
Slide 34: Co-sell Opportunity - Strengthening Our Joint Sale
Co-sell Opportunity - Strengthening Our Joint Sale Advantages of joint bids for Evosys ERP/ HCM bids Mastek Services Competitive “Total Digital Joint Go-to-Market Transformation” Solution offering Strategy Size benefit to bid for large contracts Evosys Services Size benefit to compete against
Slide 35: Acquisition and Covid Updates
Acquisition and Covid Updates
Slide 36: Evosys Acquisition Update
Evosys Acquisition Update Business Transfer Applications filed with BSE Integration Agreement and NSE on 30 June 2020 Transfer of shareholdings Scheme of Sales and Marketing teams Mastek Services Arrangement working collaboratively as of subsidiaries of Evosys Arabia in progress, (Demerger) on
Slide 37: Impact of Covid Settling Down
Impact of Covid Settling Down UK Market US Market Oracle Suite and Cloud Migration Government and Healthcare With Retail focused clientele, the Good demand all round. Customer pull experiencing robust opportunity multiple geography is struggling for opportunity experienced in newer geographies
Slide 38: Shareholding Pattern of Mastek Limited
Shareholding Pattern of Mastek Limited Q1’FY21 (As on 30th June 2020) Post approval of Scheme of Arrangement Others Others Promoters 34.3% Promoters (including 38.2% 44.8% Evosys shareholders) 44.0% MFs/ MFs/ FPIs/FIs AIFs AIFs FPIs/FIs 5.6% 13.0% 15.3% 4.8% © Copyright Mastek, 2020. All Rights Rese
Slide 39: Questions & Answers
Questions & Answers © Copyright Mastek, 2020. All Rights Reserved