Mastek Q4 earnings: Revenue up 22% YoY, PAT at ₹72.6 Cr, 240% dividend declared

“The Board of Directors recommended a Final Dividend of 240% i.e. Rs. 12.00 per equity share (on the face value of Rs. 5.00 per equity share), for the Financial Year ended March 31, 2023, subject to the Shareholders’ approval at the ensuing 41st Annual General Meeting and will be paid within 30 days from the date of the Annual General Meeting. The total dividend for the Financial Year ended March 31, 2023 (including the interim dividend of Rs. 7.00 per share) stands at Rs. 19.00 per share or 380% (in the previous year Rs. 19.00 per share or 380%),” said Mastek in a stock exchange filing.

The company reported a net income of ₹708.8 Cr during Q4FY23, up by 18.2% YoY from ₹599.5 Cr during Q4FY22 and its revenue from operations stood at ₹709.2 Cr during the quarter ended March 2022, up by 22.0% YoY from ₹581.5 reported in the year-ago quarter. Mastek said its operating EBITDA grew by 4% YoY to ₹125.5 Cr from ₹120.7 Cr and however its net profit reached ₹72.6 Cr during Q4FY23, up by 8.2% QoQ from ₹67.1 Cr in Q3FY23 but down by 17.7% YoY from ₹88.2 recorded during Q4FY22. The EPS of Mastek reached ₹23.5 during Q4FY23 compared to ₹26.1 in Q4FY22.

Commenting on the FY23 results, Hiral Chandrana, Global Chief Executive Officer, Mastek, said: “We are pleased to report a sequential revenue growth of 7.8% Q-o-Q in USD, and 5.3% Q-o-Q in Constant Currency in Q4, fueled by strong in-quarter execution and demand for Digital Engineering, Experience, and Cloud Transformation services. Despite macro uncertainty, our pipeline and order backlog across markets continues to grow, account mining is yielding results, and we added 28 new clients in the quarter. We were able to further reduce our attrition to 21.0% on LTM basis, 700 bps reduction from a year ago. We are thankful to our customers and employees for their continued trust & commitment to Mastek.” 

Arun Agarwal, Global Chief Financial Officer, Mastek, said: “We are glad to conclude FY23 with revenue growth of 18.5% Y-o-Y in constant currency and continued positive deal momentum. For the full year FY23 we were able to maintain an operating EBITDA margin at 17.8% driven by our cost-optimization focus while funding for the growth. Our 12-months order backlog stood at ₹1,794 crore, an increase of 17.2% on Y-oY in constant currency. We are confident that efforts to strengthen our leadership team, disciplined execution and strategic priorities, positions us well to navigate successfully through the current macroeconomic environment.”

Mastek said it added 28 new clients in Q4FY23 and the total active clients during Q4FY23 was 464 as compared to 444 in Q3FY23. Mastek reported that as of March 31, 2023, its 12-month order backlog was ₹1,794.1 crore ($218.3 mn), up from ₹1,705.8 crore ($206.2 mn) in Q3FY23, capturing growth of 5.2% in rupee terms and 4.1% in constant currency terms on a QoQ basis, and ₹1,469.1 crore ($193.8 mn) in Q4FY22, reflecting growth of 22.1% in rupee terms and 17.2% in constant currency terms on Y-o-Y basis. 

As of the end of March 2023, the firm employed 5,622 employees in general, 4,036 of them were stationed offshore in India and the remainder in different on-site locations. 5,687 people were employed as of December 31, 2022. Attrition during the last 12 months was 21.0% in Q4FY23 compared to 23.3% in Q3FY23.

Mastek said that as of March 31, 2023, its total cash, cash equivalents, and fair value of mutual funds were at ₹270.0 crore, down from ₹324.9 crore at the end of December 31, 2022.

The shares of Mastek closed today on the NSE at ₹1,600 apiece level, down by 0.12% from the previous close of ₹1,601.85.