Q2FY21 Total Income at Rs 413.8 crore; up by 63.7% Y‐o‐Y basis
Constant Currency Revenue grew 56.3% Y‐o‐Y
Operating EBITDA Margin of 21.1%; up 936 bps Y‐o‐Y
Added 37 new clients in quarter
Recommends Interim Dividend of 110%
Mumbai, India – 29 October, 2020: Mastek, a global IT player and a trusted partner in
complex digital & agile transformation programs in the Government and Global Enterprises
worldwide, announced today its financial results for the Second quarter & Half year of FY21.
Commenting on the Q2FY21 results, John Owen, Group CEO, Mastek,said: “Despite a volatile
global environment and unprecedented times, I am very pleased with our broad based
performance along with the revenue growth of 68.2% YoY and operating EBITDA margin of
21.1% for the quarter. Also, glad to see that we maintained our overall Group growth
momentum. The performance was balanced with strong order backlog and cash flows which
is an evidence of our resilient business model, respected relationships with our customers and
consistent execution delivered by Mastekeer’s and my leadership team, in spite of headwinds
created by pandemic. Globally, organizations are accelerating the adoption of digital
technology to strengthen recovery and transform their businesses, this creates a huge
opportunity for Mastek as a Next Generation Services Partner. I am confident that our
disciplined approach of Cut & Grow strategy helped to build on our existing strengths and
consequently will drive focused growth in coming quarters. Our integration of Evosys
continues to be in line with our expectations. I take this opportunity to thank the loyal support
and trust of our customers and the committed Mastekeers who serve them with exceptional
pride, honour and dedication.”
Abhishek Singh, Group CFO, Mastek, said: “Q2FY21 results are a testament of business
resilience, committed workforce and a trusting clientele that has driven stellar business
performance. I am happy to report an allround growth on all the lead and lag indicators of
financial performance. Our revenues grew by 6.1% sequentially, EBITDA margins stood at
21.1% and 12 month Order backlog grew 23% QoQ. We added 37 new customers on the
backdrop of increasing demand for digital transformation and cloud migration services. We
witnessed robust free cash flow (FCF) of Rs 154.1 crore at 145.7% of Net Income. This is our
best performance on profit, margins and cash flow over last few years, setting base for future.
Our Board of Directors have proposed an interim dividend of 110% or Rs. 5.50 per share. We
endeavour to maintain the momentum going forward.”
Operating highlights:
New accounts billed during the quarter: The Company added 37 new clients in Q2FY21.
Total client count as of 30th September, 2020 was 542 (LTM) as compared to 504 (LTM) in
Q1FY21.
12 month Order Backlog: 12 month order backlog was Rs 940.5 crore ($127.5 m) as on
30th September, 2020 as compared to Rs 764.5 crore ($101.3 m) in Q1FY21, reflecting a
growth of 23% in rupee terms and 22.4% in constant currency terms on Q‐o‐Q basis and
Rs 626.5 crore ($88.4m) in Q2FY20 reflecting a growth of 50.1% in rupee terms and 42.0%
in constant currency terms on Y‐o‐Y basis.
Employees: As on 30th September, 2020, the company had a total of 3354 employees, of
which 2283 employees were based offshore in India while the rest were at various onsite
locations. Employee count at the end of 30th June, 2020 was 3,321.
Dividend: The Board of Directors have recommended an interim dividend of 110% (Rs 5.5
per share) at the meeting held on 29th October, 2020.
Cash Balance: The total cash, cash equivalents and fair value of Mutual Funds stood at Rs
476.4 crore as on 30th September, 2020 as compared to Rs 458.2 crore at the end of 30th
June, 2020. Net Cash balance (after adjusting for debts) stood at Rs 223.4 crore as on 30th
September, 2020 as compared to Rs 173.0 crore at the end of 30th June, 2020. Mastek
repaid loan of $5.0m during Q2FY21, and total borrowing stands at $34.1m as of 30th
September, 2020.
Monetization of Majesco USA stake: Mastek(UK) Limited who was holding 2,018,192
stocks in Majesco (USA), tendered its entire stake with the Acquirer of Majesco (USA) for
cash and received the consideration aggregating to $32.3m on 19 October 2020.
About Mastek
Mastek (NSE: MASTEK; BSE: 523704), is an enterprise digital transformation specialist that
engineers excellence for customers in UK, US, Middle East, Asia Pacific and India. It enables
large‐scale business change programmes through its service offerings, which include
Application Development, Oracle Suite & Cloud Migration, Digital Commerce, Application
Support & Maintenance, BI & Analytics, Assurance & Testing and Agile Consulting. Whether
it’s creating new applications, modernising existing ones orrecovering failing projects, Mastek
helps enterprisesto navigate the digital landscape and stay competitive. With digitalsolutions
constituting more than 80% to the business, Mastek is emerging as one of the leaders in
Enterprise Digital Transformation journey.
Investor / Analyst contact:
Asha Gupta
Christensen IR
+91‐22‐4215‐0210
[email protected]