Mastek Limited · NSE:MASTEK
Mastek — Q1 FY2021 Earnings Presentation
30 slides from Mastek's earnings presentation, Jul 29, 2020
Slide 1: Investor Presentation
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 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 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 4: Highlights of the Quarter
Highlights of the Quarter
Slide 5: 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 $43.6m ▪ Mastek and Evosys first contract under “Joint Go-To Market strategy” signe
Slide 6: Highlights of the Quarter
Highlights of the Quarter Monetization of Majesco USA stake ▪ Mastek ranked 3rd in the Tech ▪ Mastek awarded the distinction ▪ Majesco US has decided to sell its MarketView’s “Monthly Digital of UiPath "elite" partner company to a private equity, Marketplace Dashboards” for ▪ Only 3 partners ranked
Slide 7: Financial Performance
Financial Performance
Slide 8: Consistent Financial Performance
Consistent Financial Performance Revenue from Operations Operating EBITDA Margin PAT Margin 17.3% 17.6% 13.8% 12.8% 13.2% 13.3% 12.3% 12.4% 12.7% 12.1% 12.0% 12.2% 11.8% 9.3% 11.6% 11.0% 9.8% 10.0% 10.3% 9.4% 9.6% 9.7% 9.1% 8.6% 8.6% 8.4% 7.8% 5.8% Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3
Slide 9: Financial Summary - Q1 FY'21
Financial Summary - Q1 FY’21 Key Performance Metrics Growth Growth Q1FY21 Q4FY20 Q1FY20 QoQ YoY Revenue from Operations* ($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 10: 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 13.3% 68.1 336.7 12.1% QoQ (cc) 58.2 107.2% YoY 247.5 56.0% YoY 32.9 46.1% YoY (cc) Q1FY20 Q4 FY20 Q1
Slide 11: 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 12: Operational Performance
Operational Performance
Slide 13: 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 14: 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 15: Revenue By Service Line Q1 FY'21 – Consolidated
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 Q1 FY20
Slide 16: Evosys Advantage
Evosys Advantage
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: Acquisition and Covid Updates
Acquisition and Covid Updates
Slide 27: 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 of subsidiaries of Evosys Mastek Services Arrangement working collaboratively as Arabia in progress, (Demerger) on
Slide 28: 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 29: 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/ AIFs FPIs/FIs AIFs FPIs/FIs 13.0% 5.6% 15.3% 4.8% © Copyright Mastek, 2020. All Rights Rese
Slide 30: Questions & Answers
Questions & Answers © Copyright Mastek, 2020. All Rights Reserved