Net sales (including other operating income) of Mastek has increased 3.37% to Rs 551.91 crore.  

Operating profit margin has declined from 21.13% to 21.06%, leading to 3.03% rise in operating profit to Rs 116.23 crore.  Employee cost decreased from 51.29% to 49.49%.   Other expenses rose from 27.58% to 29.45%.   

Other income fell 25.55% to Rs 5.74 crore.  PBIDT rose 1.20% to Rs 120.37 crore.  Provision for interest fell 13.51% to Rs 1.6 crore.  

PBDT rose 1.43% to Rs 120.37 crore.  Provision for depreciation rose 1.25% to Rs 10.55 crore.  

Profit before tax grew 1.45% to Rs 109.82 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 26.37 crore, compared to Rs 26.72 crore.  Effective tax rate was 24.01% compared to 24.68%.

Minority interest increased 6.17% to Rs 9.81 crore.  Net profit attributable to owners of the company increased 1.87% to Rs 73.64 crore.  

Promoters' stake was 37.59% as of 31 December 2021 ,compared to 37.75% as of 30 September 2021 .  

Quarterly result YOY comparison

Net sales (including other operating income) of Mastek has increased 24.63% to Rs 551.91 crore.  Sales of UK & Europe operations segment has gone up 23.84% to Rs 366.17 crore (accounting for 66.35% of total sales).  Sales of Others segment has gone up 37.76% to Rs 33.09 crore (accounting for 6.00% of total sales).  Sales of segment has gone up 30.67% to Rs 102.07 crore (accounting for 18.49% of total sales).  Sales of segment has gone up 12.30% to Rs 50.58 crore (accounting for 9.16% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 7.66% to Rs 121.62 crore.  PBIT of UK & Europe operations segment rose 48.73% to Rs 106.67 crore (accounting for 87.71% of total PBIT).  PBIT of Others segment fell 17.30% to Rs 6.93 crore (accounting for 5.70% of total PBIT).  PBIT of segment fell 40.67% to Rs 10.49 crore (accounting for 8.63% of total PBIT).  PBIT of reported loss of Rs 2.47 crore compared to profit of Rs 15.19 crore.  

PBIT margin of UK & Europe operations segment rose from 24.26% to 29.13%.  PBIT margin of Others segment fell from 34.89% to 20.94%.  PBIT margin of segment fell from 22.63% to 10.28%.  PBIT margin of segment fell from 33.73% to 4.88%.  Overall PBIT margin fell from 25.51% to 22.04%.  

Operating profit margin has declined from 23.45% to 21.06%, leading to 11.91% rise in operating profit to Rs 116.23 crore.  Employee cost decreased from 50.94% to 49.49%.   Other expenses rose from 25.61% to 29.45%.   

Other income rose 46.80% to Rs 5.74 crore.  PBIDT rose 13.18% to Rs 121.97 crore.  Provision for interest fell 9.09% to Rs 1.6 crore.  

PBDT rose 13.55% to Rs 120.37 crore.  Provision for depreciation fell 9.83% to Rs 10.55 crore.  

Profit before tax grew 16.45% to Rs 109.82 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 26.37 crore, compared to Rs 24 crore.  Effective tax rate was 24.01% compared to 25.45%.

Minority interest decreased 23.89% to Rs 9.81 crore.  Net profit attributable to owners of the company increased 28.25% to Rs 73.64 crore.  

Promoters' stake was 37.59% as of 31 December 2021 ,compared to 44.25% as of 31 December 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Mastek has increased 29.36% to Rs 1602.31 crore.  Sales of UK & Europe operations segment has gone up 32.01% to Rs 1,086.62 crore (accounting for 67.82% of total sales).  Sales of Others segment has gone up 71.72% to Rs 94.72 crore (accounting for 5.91% of total sales).  Sales of segment has gone up 28.52% to Rs 278.61 crore (accounting for 17.39% of total sales).  Sales of segment has gone down 0.86% to Rs 142.36 crore (accounting for 8.88% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 35.23% to Rs 350.85 crore.  PBIT of UK & Europe operations segment rose 57.09% to Rs 300.82 crore (accounting for 85.74% of total PBIT).  PBIT of Others segment rose 319.24% to Rs 24.40 crore (accounting for 6.95% of total PBIT).  PBIT of segment fell 11.61% to Rs 28.86 crore (accounting for 8.23% of total PBIT).  PBIT of reported loss of Rs 3.23 crore compared to profit of Rs 29.47 crore.  

PBIT margin of UK & Europe operations segment rose from 23.27% to 27.68%.  PBIT margin of Others segment rose from 10.55% to 25.76%.  PBIT margin of segment fell from 15.06% to 10.36%.  PBIT margin of segment fell from 20.52% to 2.27%.  Overall PBIT margin rose from 20.95% to 21.90%.  

Operating profit margin has jumped from 20.87% to 21.33%, leading to 32.22% rise in operating profit to Rs 341.82 crore.  Employee cost decreased from 51.64% to 50.19%.   Other expenses rose from 27.49% to 28.48%.   

Other income fell 26.43% to Rs 18.15 crore.  PBIDT rose 27.11% to Rs 359.97 crore.  Provision for interest fell 18.61% to Rs 5.16 crore.  

PBDT rose 28.16% to Rs 354.81 crore.  Provision for depreciation fell 11.60% to Rs 30.71 crore.  

Profit before tax grew 33.86% to Rs 324.10 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 78.91 crore, compared to Rs 66.08 crore.  Effective tax rate was 24.35% compared to 27.29%.

Minority interest increased 9.99% to Rs 29.96 crore.  Net profit attributable to owners of the company increased 44.64% to Rs 215.23 crore.  

Promoters' stake was 37.59% as of 31 December 2021 ,compared to 44.25% as of 31 December 2020 .  

Order Backlog:

12 month order backlog stood at Rs 1,271.3 crore ($171.0 mn) as on Dec 31, 2021 as compared to Rs 1,154.3 crore ($155.5 mn) in Q2FY22, reflecting a growth of 10.1% in rupee terms and 9.9% in constant currency terms on QoQ basis and Rs 946.7 crore ($129.6mn) in Q3FY21, reflecting a growth of 34.3% in rupee terms and 33.7% in constant currency terms on YoY.

Management Commentary

Commenting on the Q3Y22 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: We have delivered consistent revenue and order book growth with robust performance across geographies in Q3FY22. Our account mining and integrated solutioning efforts have led to revenue growth in our strategic bets including Health and Life Sciences and our Data/ Automation & Oracle Cloud services. We had strong deal momentum which is reflected in our 12 months order backlog of US$171 mn end of December 2021. As part of our Strategic Vision 2025 that will drive accelerated growth over the next 3 years, we have on-boarded 2 new global executives, one to lead Marketing & Partnerships and another for Innovation & Platforms as we continue to deliver differentiated business value for our clients across digital & cloud programs.

Arun Agarwal, Global Chief Financial Officer, Mastek, said: Q3FY22 is another quarter where we demonstrated resilience of our business and delivered a strong financial performance. We reported operating revenue of Rs 551.9 crores, a growth of 24.6% on Y-o-Y basis, reinforcing the strong fundamentals of our business in a seasonally week quarter. Despite industry wide challenges driven by high attrition, investment in talent retention and lateral hires, we have been able to maintain healthy operating EBITDA margin at 21.1%. I am pleased with increasing average deal size in the UK and other geographies. We are confident that our next-gen capabilities, sectoral expertise and client mining strategy are well placed to ensure the velocity at which we grow, add value to our customers and maximize value for our shareholders.

Mastek: Consolidated Results

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