Mastek Appoints Marilyn (Mamie) Jones to Its Board of Directors
Management change-restructuring ?
Her linked profile - https://www.linkedin.com/in/mamie-f-jones-865a981/
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Can anyone share their insights on recent collaboration of company with Nvidia for AI rollout. What could be the market size, future prospects of the business etc please.
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What is the expectation of EPS delivery in FY25 and FY26? I think the stock trades at a comfortable valuation.
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Mastek | Management Interview
a. Says Aspiration is to improve mara. gin by 200 bps to 19% in the next 2 yrs
b. Expecting Q4 to have better growth than Q3
c. FY26 growth profile should be moderately better than FY25
d. Wage hikes impacted Q3 margins by 160 bps
e. We are looking at investing in UK/ Europe geography via tuck in acquisitions
Watch the interview here - https://youtu.be/09LsNJf4F7Q
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Mastek – Key Update
- Generative AI Expansion: Strengthening AI capabilities to drive faster innovation & digital transformation.
- OpenAna AI Engineer (Ana): Enhances software delivery, efficiency, and team productivity.
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Any more insights into this news from anyone following Mastek?
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Mastek Q4FY25 Concall and Investor PPT Highlights
Financial Highlights
Q4 Update
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Revenue at Rs 905.4 crore, up 16.1% YoY.
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EBITDA at Rs 138.8 crore, up 10.9% YoY
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PAT at 81.07 Cr, -14% YoY including Exceptional loss of 8.13 Cr (Excluding Exceptional Items there is growth of 6% YoY and 5% QoQ)
FY25 Yearly Update
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Revenue at 3455.2 Cr, up 13.1 % YoY
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EBITDA at 546.5 Cr, up 7.4% YoY
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PAT at 375.9 Cr, up 20.9% YoY.
FY25 EPS at 122 Vs our forecast of 108.
12 Month Order Backlog at 2290.9 Cr, up 5.6% YoY.
Attrition is at 19.3 %
Business Updates
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Innovation around Data and AI, started to see the fruits of AI development done in past some months. Customers are seeing 30% efficiency.
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Adopt.AI has been extended to all other platforms enabling customers efficiency and faster turnaround time. Some use cases are going through POCs.
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Data business is around Snowflake and Salesforce in US.
EBITDA Degrowth
Degrowth in EBITDA is largely attributed to
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Growth in UK business is new business with Data and AI capabilities where the margins are lower due to building and strengtheining the capabilities.
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Reset - in terms of people changes in Organisation has led to one time costs.
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Lower Revenue growth in USA has impacted the bottom line.
- PAT performance degrowth has been due to one time loss.
FY26 Outlook
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Expecting Growth in Core business and Core markets ( Europe and UK - Healthy Monentum)
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Secured Government business is healthy and focus is on acquiring new projects and new departments.
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Healthcare continues to be high growth.
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Data and AI will be focus - across sectors and geographies.
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Ambition is to drive to 17-19%
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Some restructuring in the USA will take time.
UK & Europe Business
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Achieved 18% YoY and 9% QoQ growth, making it the strongest performing geography this quarter.
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All major Government contracts were successfully renewed.
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The UK continues to lead the company’s Data and AI strategy, delivering innovative digital solutions across industries.
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Healthcare is the top-performing vertical, with expanding projects in prevention, collections, and AI-led insights.
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The Private Sector is showing healthy growth, driven by digital, data, and Oracle solutions.
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Margins have been impacted slightly due to onsite resources and higher subcontractor costs, though EBITDA growth is expected to continue.
NHS Business Updates
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NHS merger is a long-term initiative, expected to span at least two years. The focus is on enhancing operational efficiencies within NHS services, while tech investments are expected to increase, driven by initiatives in prevention, collections, and Data & AI.
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The NHS business remains a long-term focus; although some new contracts were secured at lower margins, the company is driving operational efficiencies to recover margins by H2 FY26.
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The company secured Data and AI-led contracts with the NHS, positioning itself as a strategic partner in the government’s flagship healthcare modernization efforts.
USA Business
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YoY growth of 16%, but a QoQ decline of 8%, primarily due to macroeconomic headwinds.
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Oracle business saw strong momentum with 50% YoY growth.
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The U.S. business is currently serving 120+ active clients, and undergoing a strategic reset, including leadership changes and organizational restructuring.
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Data and AI investments are being ramped up to align with evolving client needs, especially across healthcare, manufacturing, and utilities.
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Salesforce segment experienced some pressure due to public sector budget cuts.
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The company is consolidating 3–4 prior acquisitions into a unified structure to drive efficiency and synergy.
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Client insourcing due to market conditions has temporarily impacted project execution and deal closures.
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Growth potential remains strong, especially in modernization initiatives fueled by AI adoption.
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Near-term focus is on cost management, simplification, and strengthening core verticals
AMEA (Asia, Middle East & Africa) Business
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Historically Oracle-centric, the region has now diversified into Data, AI, Salesforce, and digital services.
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Healthcare remains the primary growth engine across the region.
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Focus is on profitable expansion, especially in healthcare transformation projects.
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Profitability is on an upward trajectory, with a positive outlook for the coming quart
Employee Breakup
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Data and AI team around 250 people - growing QoQ - adding another 50 people -will grow the fastest.
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Working with startups and others.
Conclusion
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Continue to focus on Core business.
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Evolving Tech capabilities around Data and AI.
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Near term uncertainties.
Disc - Tracking and Learning
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