Mastek Limited · NSE:MASTEK
Mastek — Q2 FY21 Earnings Presentation
41 slides from Mastek's earnings presentation, Oct 30, 2020
Slide 1: Cover letter to stock exchanges
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/64/2020-21 October 30, 2020 Listing Department Listing Department BSE Limited The National Stock Exchange of India Limited 25th Floor, Phiroze Jeejeebhoy
Slide 2: Press Release | Q2FY21
Mastek*@ Press Release | Q2FY21
Slide 3: Q2FY21 Total Income at Rs 413.8 crore; up 63.7% YoY
For Immediate Release 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 g
Slide 4: Review of Consolidated Financial Performance for Quarter and Half Year
For Immediate Release Review of the Consolidated Financial Performance for Quarter and Half Year ended 30th September 2020: Q‐o‐Q Figures in $m Q2FY21 Q1FY21 Q2FY20 Y‐o‐Y Growth Growth Revenue from $55.1 $50.8 5.3% (CC) $34.4 56.3% (CC) Operations Q‐o‐Q Y‐o‐Y Figures in Rs Crore Q2FY21 Q1FY21 Q2FY20
Slide 5: Operating highlights
For Immediate Release 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.
Slide 6: Evosys, a leading Oracle Cloud implementation company
For Immediate Release Evosys, a leading Oracle Cloud implementation and consultancy company, serving 1,000+ Oracle Cloud customers across 30+ countries, has added more capability, more capacity and more geographical reach across the globe for Mastek group. An Oracle Platinum partner, Evosys provides
Slide 7: Thank You
For Immediate Release T Thank You _________________________________________________________________________________ 6 of 6
Slide 8: Presented by John Owen and Abhishek Singh
Presented by: John Owen | Group CEO Abhishek Singh | Group CFO
Slide 9: Table of Contents
Table of Contents 01. Highlights of the Quarter 02. Financial Performance 03. Operational Performance 04. Key Wins for the Quarter 05. Evosys Advantage 06. Acquisition and Covid Updates Mastek Limited | Investor Presentation 2021 | Presentation title in footer 2
Slide 10: Highlights of the Quarter
Highlights 01 of the Quarter 02 03 04 05 06
Slide 11: Highlights of the Quarter
Highlights of the Quarter Mastek crossed $55m revenue mark Improvement in Operating Mastek and Evosys signed in the Q2 EBITDA margin of 350 bps QoQ second deal in H1FY21 under “Joint Go-To Market Q1 Q2 Q3 Q4 21.1% Operating strategy” Q2 FY EBITDA margin 21 6.1% QoQ revenue growth in Q2FY21 Mastek Jo
Slide 12: Financial Performance
Financial 02 Performance 01 02 03 04 05 06
Slide 13: Consistent Financial Performance
Consistent 68.2% Financial Performance Revenue growth YoY Revenue from Operations Operating EBITDA Margin PAT Margin 21.1% 21.1% Operating 17.3% 17.6% EBITDA margin 13.2% 13.3% 13.8% improved by 936 bps 12.3% 12.4% 12.7% 12.2% 12.8% 12.1% 12.0% 11.8% YoY 14.3% 11.0% 11.6% 9.8% 10.0% 9.7% 10.3% 9.4%
Slide 14: Financial Summary – Q2 FY21
Financial Summary – Q2 FY21 Growth Growth Key Performance Metrics Q2FY21 Q1FY21 Q2FY20 QoQ YoY Revenue from Operations* ($m) $55.1 $50.8 $34.4 5.3% (CC) 56.3% (CC) Revenue from Operations* (Rs Crore) 409.7 386.1 243.6 6.1% 68.2% Revenue Other Income (Rs Crore) 4.1 16.7 9.1 (75.7%) (55.5%) Total Inco
Slide 15: Financial Summary – H1 FY21
Financial Summary – H1 FY21 Growth Key Performance Metrics H1FY21 H1FY20 YoY Revenue from Operations* ($m) $105.8 $69.9 51.2% (CC) Revenue from Operations* (Rs Crore) 795.8 491.1 62.0% Revenue Other Income (Rs Crore) 20.8 14.3 45.7% Total Income (Rs Crore) 816.6 505.4 61.6% Op. EBITDA 154.7 61.5 151
Slide 16: Consolidated Financial Highlights Q2 FY21
Comparison: Quarter-on-Quarter and Year-on-Year (Figures in Rs Crore) Consolidated Financial Highlights Q2 FY21 Operating EBITDA & 12 Months Order Operating Revenue PAT & Margin (%) Margin (%) Backlog* 21.1% 14.3% 17.6% 940.5 86.6 11.6% 386.1 409.7 9.7% 764.5 11.8% 68.1 626.5 243.6 59.1 46.6 28.7 24
Slide 17: Balance Sheet Metrics H1 FY'21 - Consolidated
Strengthening the Balance Sheet Balance Sheet Metrics H1 FY’21 - Consolidated Return on Capital Free Cash Flow* Cash & Cash Equivalent* Return on Equity*# Employed*# 168.0 23.1% 154.1 476.4 20.6% 19.8% 414.7 16.0% 17.1% 14.6% 244.5 60.2 FY19 FY20 H1FY21 FY19 FY20 H1FY21 FY19 FY20 H1FY21 FY19 FY20 H1
Slide 18: Operational Performance
Operational 03 Performance 01 02 04 05 06
Slide 19: Operating Metrics Q2 FY21
Operating Metrics Q2 FY21 Strengthening our business Q2FY21 Q1FY21 Q2FY20 New Clients Added 37 48 11 Active Client (immediately preceding 12 months) 542 504 144 Client Base Top 5 35.1% 34.5% 40.0% Top 10 45.8% 48.1% 57.0% Total Employee 3,354 3,321 1,937 - Offshore 2,283 2,227 1,171 Employee - Onsit
Slide 20: Revenue Analysis Q2 FY21 - Consolidated
Balancing our portfolio Revenue Analysis Q2 FY21 - Consolidated Revenue by Market Region* Revenue by Q2FY20 31.3% 37.1% 8.7% 17.6% 5.3% Industry Segment 1.9% 3.5% 4.3% Government Q1FY21 33.6% 17.7% 19.9% 12.8% 16.0% 26.6% 14.1% 10.8% Retail Services 17.1% 17.7% Health 71.5% Financial Services Q2FY21
Slide 21: Revenue by Service Line Q2 FY21
8.8% 1.0% Operational Performance Revenue By Q2FY20 44.0% 26.1% 16.4% Service Line Q2 FY21 – 3.0% 3.7% 1.1% Consolidated Q1FY21 40.7% 34.7% 11.1% 7.6% Applicant Development Oracle Suite & Cloud Migration 1.8% Digital Commerce Application Support & Maintenance 4.2% 0.2% BI & Analytics Assurance & Tes
Slide 22: Key wins for the quarter
Key wins 04 for the quarter 01 02 03 05 06
Slide 23: Public Sector
Public Sector UK ROW ME • Client: Central Government • Client: Large government owned • Client: Government owned civil Department investment company in Australia, aviation company About the deal: Brexit Impact: having presence since 30 years, About the deal: Evosys shall be Innovative new solutions
Slide 24: Healthcare
Healthcare US UK • Client: Multimillion healthcare • Client: National Health Service giant having more than 70 About the deal: nursing and assisted living COVID Impact: Developing a centers in the US across eight cutting edge collaboration states platform for the suite of About the deal: Evosys will
Slide 25: Manufacturing & Engineering and Construction
Manufacturing & Engineering and Construction US UK & Europe Private Sector • Client: A Global manufacturer of industry leading medical products. • Client: A multi billion and leading About the deal: As a key transformation partner, Mastek is helping the customer global design & consultancy firm enha
Slide 26: Telecom Retail
Telecom Retail ME US • Client: Bahrain's leading • Client: 24 years old leading skin telecom company. Using SAP care brand from USA with ECC for more than a decade markets in Australia, Europe, USA About the deal: Evosys shall & Scandinavia deploy its GLIDE for SAP About the deal: program to complet
Slide 27: Evosys Advantage
Evosys Advantage 05 01 02 03 04 06
Slide 28: Evosys: One of the Top SI for Oracle Cloud Applications
One of the Top SI for Oracle Cloud Applications Evosys Global and Cross Pillar Value Based Delivery • 1000+ Global Customers with Deliver Measurable Outcome presences in 30+ countries • Expertise in all Oracle Cloud Pillars Oracle Global Verticalized Approach Evosys Glide (On Prem to Cloud) Platinum
Slide 29: Prebuild Accelerators for On Premise to Cloud Transformation
Prebuild Accelerators for On Premise to Cloud Transformation 87 clients 6 clients 6 clients Assessment of Insights to build Advisory services Data Migration Support and configuration & expected ROI for enhancement customizations transformation services Accelerators Mastek Limited | Investor Presenta
Slide 30: Evosys - ERP, SCM Extensions/Solutions
Evosys - ERP, SCM Extensions/Solutions Evo Bank Facility Point of Sales Catch Weight Sales Management System Solution Solution Evo Subcontract Evo Van Sales Evo Mobile Supply Management Solution Chain Solution SMART Desk- Service Online Freight Multi-dimensional Request Calculation Reporting Managem
Slide 31: Oracle Named as a Magic Quadrant Leader
Oracle Named as a Magic Quadrant Leader CHALLENGERS LEADERS Magic Quadrant provides visibility into an enterprise’s financial position through automation and process support Gartner Names Oracle (Oracle ERP Cloud) a Magic Quadrant Leader Market for cloud suites will continue to evolve over next 5 to
Slide 32: 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 Suites Enterprises* for Midsize, Large and Global Enterprises* Mastek Limited | Investor Presentation 2021 | 25 *Source: Oracle
Slide 33: Evosys Amongst Top Leaders for Oracle Cloud Application Services
Evosys Amongst Top Leaders for Oracle Cloud Application Services Improvement in ranking For 2 consecutive years of Evosys year on year 2019 2020 $20 Billion+ in services & CHALLENGERS LEADERS CHALLENGERS LEADERS implementation revenue opportunity around Oracle annually Existing players in ‘Leaders’
Slide 34: Advantages of EVOSYS Acquisition
Advantages of EVOSYS Acquisition Fast Growth Oracle Cloud ERP/HCM Oracle is the leader in this Evosys has been a winner, year- is growing @ 30%+ segment, as stated by Gartner after-year, in Oracle’s Global in its various reports Awards category for Performance Growth of Oracle is the Evosys- a consi
Slide 35: Advantages of EVOSYS Acquisition
Advantages of EVOSYS Acquisition Accelerating Client Acquisition High Profitability Set of 1,300 strong serviced customer-base High EBIDTA business which is repeatable and globally; around 200 customers having >$1 billion scalable revenue; helps in leveraging Digital Transformation services offered
Slide 36: Cross-Sell Opportunity
Mastek and Evosys 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 Oracl
Slide 37: Co-sell Opportunity
Strengthening Our Joint Sale Advantages of joint bids for Evosys ERP/ HCM bids Co-sell Opportunity Competitive “Total Digital Transformation” Solution offering Mastek Services Size benefit to bid for large Joint contracts and compete against large Go-to-Market players Strategy Evosys Services Multi-
Slide 38: Acquisition and Covid Updates
Acquisition and Covid Updates 06 01 02 03 04 05
Slide 39: Evosys Acquisition Update
Evosys Acquisition Update Scheme of Arrangement Business Transfer Agreement Integration (Demerger) • Transfer of shareholdings of • Applications filed with BSE • Sales and Marketing teams subsidiaries of Evosys Arabia and NSE on 30 June 2020 working collaboratively as in progress • Awaiting approval
Slide 40: Macro Economic Factors in Our Market
Macro Economic Factors in Our Market Oracle Suite and Cloud UK US Migration • No deal Brexit looming large • With Retail focused clientele, the • Good demand all round. Customer • Public sector is reasonably geography is struggling for pull experienced in newer insulated opportunity and conversion g
Slide 41: Questions & Answers
Mastek*@ Thank You Questions & Answers