The Sep 2020 SH shows zero pledge. https://www.bseindia.com/corporates/shpPromoterNGroup.aspx?scripcd=523704&qtrid=107.00&QtrName=September%202020
Additionally the entire Majesco stake has now been monitized. Company received 32.3 million USD as compensation.
Regards
K
Two things going for Mastek. cheap valuation and good growth prospects for their recent cloud acquisition. Let’s see if they deliver.
Disc: Invested.
Interesting article, focuses on the combined strength of Mastek and Evosys, the evolving preferences of IT customers, the possibilities of being acquired and valuations. Good read.
http://www.sohamdas.in/theses/2-pitch-1-discussion-can-mastek-convert/
And they did deliver this quarter. EPS doubles yoy and the thing that really matters is sales which grew 60% yoy and 5% qoq. CFO is 3x yoy. Some dividend too.
Appointment of Mr.Ketan Mehta as an Additional Director
“Experience: Nearly four decades in the Information Technology Industry.
Qualification: Management Degree from the Indian Institute of Management (IIM), Ahmedabad.
October 2018 to September 2020, Mr.Ketan has served as Chairman of the Board of Majesco (USA entity) when he played
a pivotal role in selling Majesco business to private equity firm – Thoma Bravo. Prior to that, he served as President of
Majesco (USA entity) from 2000 until March 2019, and Chief Executive Officer of Majesco (USA entity) from July 2011
to October 2018.
Mr.Ketan co-founded Mastek in 1982 and served as a member of the Board of Directors of Mastek until June 1, 2015 after
which he focused exclusively on Majesco business. During his long stint with Mastek, Majesco and its affiliates, he has
handled multiple functions including sales, delivery, and general management. He was the driving force behind the
conceptualisation and execution of Majesco’s insurance strategy, including acquisition and integration of seven insurance
technology companies over the last thirteen years. Prior to that, he has also spearheaded Mastek’s joint venture with
Deloitte Consulting.”
Now Mastek has a good advantage from very senior management.
Regards,
Murari Shah
One senior guy comes and another leaves with immediate effect. Not sure how to read when Mastek’s CEO leaves suddenly without giving any specific reason.
John has spent the typical CEOs tenure of around 5 years. This is the time that a pro CEO takes to bring fresh ideas to the table and see them implemented. John did a stellar job. Abhishek has been fronting the con calls for a bit now and recently stepped down from CFO position into a yet undefined business role. I wouldn’t be too surprised if he’s given the top seat, or perhaps another iteration of someone new with a fresh set of ideas and the story can propel further.
My short take after listening to the call. Focus on segments such as US, private sector in EU/US might have led to some conflict leading to his abrupt departure. The call was candid in discussing many issues but there seems to be other reasons (compliance breach, personality clash, difference in strategy, merger issues etc) which can’t be made public. The CEO doesn’t leave with 2 days’ notice and the company can’t hire so soon when the pandemic is raising its head again in UK. Rerating will stall in the near term despite execellent earning prospects.
Disc: Invested
Very well put.I think the adverse reaction on the stock is because this has come out of the blue and was very unexpected.On the business side there should be no impact as such.Mr. Owen created a good roadmap for Mastek and I am sure the remaining top management will take that legacy forward.I liked the part about North America being the focus area and the next CEO also potentially being from North Am.For what it’s worth,Mr. Owen will continue in an advisory capacity for some time.So barring extreme short term disruptions,it should be business as usual.
Disc: Invested.
Anyone attended today’s concall ? If yes, Please share summary of the same. Thank you.
We need to focus on the long term abt which the abv dec 20 interview of GFO gives good info
Mastek now seems to be focussing on USA the biggest mkt. Seems co well on its way to a mid to large cap over years if they succeed in US.
Discl- invested. not a sebi adviser
Terrific numbers from Mastek.
Press Release and Investors Presentation:
Mastek’s Q3 call concluded few minutes back.Some highlights:
-> Company grew 3% in US markets even in a seasonally weak quarter. UK public sector continues to do well for the company. Overall margins are near all-time highs.
-> Added 49 customers in Q3,15 of these were from North Am market.Order book rose slowly in q3 but trend is strong.
-> EvoSys growth continues to be strong.Company is now looking at manufacturing & engineering and construction sector as the growth drivers.Cloud adoption is still in the nascent stage in these sectors and company can take good advantage of the same.
-> Operating margins continue to have the tailwinds of lower expense and a better offshore mix.Maintaining a near 20% kind of OPM guidance in normal times.
-> Company’s net cash balance is at 520 cr.Mastek is now seriously looking at another acquisition.This will most likely be focussed on the North America market.The top priority is synergy and not just revenue.
-> The search for a CEO continues,company has some interviews lined up.Again preference is to have a person experienced in the North America geography.
Overall the management seemed upbeat on business growth from a 3-5 year view.EvoSys especially seems to be in top gear.The abrupt resignation of Mr. Owen seems to have had a minimal impact on the working.I only missed the cricketing analogies.
Disc.: Invested…views are biased.
Interesting set of companies that Mastek is part of: Twelve suppliers appointed to £800m digital capability for health framework
This came up in Q3 concall:
"Darshit Shah
Yes, sir. Congratulations for a great set of numbers. Sir, my question is, you have rightly highlighted the opportunity size in the U.K. government size in millions of dollars. Now reading an article posted yesterday in which that has recently shortlisted around 12 companies for – on the health side of orders, roughly around $800 million, around INR 6,000 crores. So – and congratulations to be a part of that 12 shortlisted company in the likes of IBM, Accenture and others. So is this kind of the deal that you were talking post-Brexit? Or this is more about the deals which you were talking in the earlier calls?
And on that question, sir, I mean, in this $800 million dollars, is this the size which NHS is talking, how much of the pie – probably, if you can quantify something which we’ll be getting out of it?
Abhishek Singh
Thank you, Darshit. So this is one of the endeavors that we had though it is a framework deal just to qualify that. Framework does not mean that you get the revenue. Framework means that these are the 12 IT services services firm who will be bidding for that buy and clearly the buy is extremely large at GBP 800 million pounds. So rightfully recognized and commented upon, Darshit.
Here onwards, we will be bidding the if this was the hunting license to bid for in that particular framework. Having said that, as market, we have had very, very substantial success in the healthcare space over the last 12 months or rather the calendar year '20, if you were to look at. And that included lot of large and small deals that included an infrastructure – health infrastructure of national importance that we are building for NHS Department of Health and Social Care. It includes the offshoring initiatives to help them manage their costs and the scale of the support that NHS needs in these pandemic times."
Disc: Not invested, studying the company.
@paragbharambe sir if you can clarify, mastek(evosys) uses oracle cloud but its classified as a failed product or not adjusted according to market perception, can you clear why mastek is still using oracle cloud, or is there any other way to see things which i am not able to see
@Divyanshu_Taneja Do you have any reference that Oracle is not working in Cloud platform. I have checked with few friends in Oracle and they are having products comparable to AWS/GCP/Azure. Only thing is they have not explored the partner led model as such. You will find very less partners offering Oracle Cloud services. But this can become niche for that partner as well if only few players are there.
The cloud is just computers in a data center. What matters is what the cloud of used for. In this case, it is ERP. in ERP cloud, oracle has a second highest market share:
Oracle ERP suite is taking market share from SAP, since SAP took lot of time to move out of legacy desktop based solution. Evosys implements/deploys Oracle cloud based solutions for it’s clients.
Apart from this Mastek has capabilities in AWS/Azure/Google cloud as any other IT service company. They are cross-selling to EvoSys clients who need solutions based on cloud platforms other than Oracle. It’s win-win for Mastek.
I do not think that is correct. They are using Oracle Cloud. In fact, Mastek is betting huge on Oracle. Evosys is the leading player in Oracle Implementation globally. In addition Mastek bought another company in the US in 2017- TAISTech, it is also closely working with Oracle (Oracle ATG Product Implementation).
Based on the latest con call it looks like they are seeing huge demand for Oracle Cloud implementation and it is reflected in their PAT. Mastek never had PAT for more than 80 cr consistently in the last two decade. They reported 80+ once or twice but went to loss immediately in last decade. However this time due to Evosys acquisition, they are reporting 70 cr quarterly profit, which is huge jump.
I think things looking positive for Mastek.
Note- Holding share so views are biased.
