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Mastek Q1 PAT drops 24% QoQ to Rs 71 cr

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Last Updated : Jul 18 2024 | 3:32 PM IST

The IT company's consolidated net profit tumbled 24.27% to Rs 71.50 crore in Q1 FY25 as against Rs 94.41 crore reported in Q4 FY24.

However, revenue from operations grew by 4.25% quarter on quarter (QoQ) to Rs 812.89 crore in the quarter ended 30 June 2024.

On a year on year (YoY) basis, Mastek's net profit declined 2.76% while revenue rose 12.08% in Q1 FY25.

Operating EBITDA was at Rs 123.9 crore in the June quarter, registering the decline of 0.9% QoQ and 2.4% YoY. Operating EBITDA margin reduced to 15.2% in Q1 FY25 as compared to 16% in Q4 FY24 and 17.5% in Q1 FY24.

In terms of dollars, the firm's revenue was $97.3 million in Q1 FY25, up 3.8% QoQ and 10.4% YoY. In constant currency terms, revenue was up by 4.1% QoQ and 9.9% YoY.

Twelve months order backlog was at Rs 2,168.8 crore ($260.1 million) as on 30 June 2024 as compared to Rs 1,763.9 crore ($215.0 million) in Q 1FY24, reflecting growth of 23% in rupee terms and 21% in constant currency terms on YoY basis and Rs 2,168.4 crore ($260.0 million) in Q4 FY24.

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The total cash, cash equivalents and fair value of mutual funds stood at Rs 383.5 crore as on 30 June 2024 as compared to Rs 473.3 crore at the end of 31 March 2024.

The company added 13 new clients in Q1 FY25. Total active clients during the quarter were 391 as compared to 430 in Q4FY24 reflecting deeper account mining and higher revenue per account.

As on 30 June 2024, the company had a total of 5,546 employees, of which 3,851 employees were based offshore in India while the rest were at various onsite locations. Employee count at the end of 31 March 2024 was 5,539. Last twelve months attrition stood at 20.9% in Q1 FY25 in comparison with 20.5% in Q4 FY24.

Hiral Chandrana, chief executive officer at Mastek, said, We are pleased to report a healthy start to FY25, with a 3.8% Q-o-Q revenue growth in dollar terms delivering $97.3mn in Q1. The top line growth was driven by our key strategic priorities including Healthcare in US, Central Government in UK, Account Mining and Data/AI solutions globally. While we continue to see delays in deal closures, the demand for our differentiated digital & cloud services is strong and the 12 month order backlog grew by 21% Y-o-Y in dollar terms.

Arun Agarwal, chief financial officer of Mastek, said, We are delighted to report revenue of Rs 813 crore, witnessing a growth of 12.1% on Y-o-Y basis in rupee terms. Our EBITDA at Rs 124 crore with a margin of 15.2%, is below our operating plan expectations due to delay in couple of project commencements and provision for aged receivables in Middle East. We continue to make strategic investments which is helping us deliver top line growth despite ongoing macroeconomic challenges and look forward to building on this momentum in the future.

Mastek is an IT company providing enterprise digital and cloud transformation services to the Government/ public sector, health and life science, retail and financial service sectors. The company's service offering includes, application development, Oracle suite & cloud migration, digital commerce, application support & maintenance, BI & analytics, assurance & testing and agile consulting.

Shares of Mastek shed 0.62% to Rs 2,801.35 on the BSE.

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First Published: Jul 18 2024 | 3:09 PM IST

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