Mastek spurts after strong Q2 performance

Mastek surged 9.84% to Rs 882 after the companys consolidated net profit rose 27% to Rs 59.1 crore on a 6.1% rise in revenue from operations to Rs 409.7 crore in Q2 September 2020 over Q1 June 2020.

Oct 30, 2020 10:10 IST capital market

Total EBITDA increased by 6.8% to Rs 90.6 crore in Q2 FY21 from Rs 84.8 crore in Q1 FY21. EBITDA margin was at 21.9% in Q2 FY21 as against 21.1% in Q2 FY21.

In US dollar terms, the firms revenue from operations rose 5.3% on constant currency to $55.1 million in Q2 FY21 over Q1 FY21.

The 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 million) 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 Q2FY2O reflecting a growth of 50.1% ?n rupee terms and 42.0% in constant currency terms on Y-o-Y basis.

The board of directors have recommended an interim dividend of Rs 5.5 per share.

The companys net cash balance (after adjusting for debts) stood at Rs 223.4 crore as on 30 September 2020 as compared to Rs 173 crore at the end of 30 June 2020.

The company added 37 new clients in Q2 FY21. Total client count as of 30 September 2020 was 542 (LTM) as compared to 504 (LTM) in Q1FY21.

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.

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 Mastekeers 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.?

Mastek is an enterprise digital transformation specialist. 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.

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