Mastek (MASTEK) Q2 24/25 earnings summary

Executive summary

• Achieved 6.7% quarter-on-quarter and 13.3% year-on-year revenue growth, surpassing $100mn in quarterly revenue, with strong profitability and robust performance in North America and the U.K.

• North America posted 18% sequential growth, driven by new client wins and expansion in healthcare and commercial verticals.

• Recognized with multiple industry awards and featured in analyst reports for digital transformation and AI services.

• Secured significant new deals across government, healthcare, financial services, and retail sectors globally.

• Consolidated unaudited financial results for the quarter and six months ended September 30, 2024, were reviewed and approved by the Board and auditors, with no material misstatements identified.

Financial highlights

• Q2FY25 revenue was ₹867.4 crore (₹86,739 lakhs), up 6.7% QoQ and 13.3% YoY; operating EBITDA at ₹143.1 crore, up 15.5% QoQ and 16.3% YoY.

• PAT for Q2FY25 at ₹128.7 crore (₹12,865 lakhs), up 79.9% QoQ and 97.1% YoY; PAT margin improved to 14.7%.

• 12-month order backlog at ₹2,194.7 crore, up 1.2% QoQ and 17.9% YoY.

• H1FY25 revenue at ₹1,680.3 crore (₹1,68,028 lakhs), up 12.7% YoY; PAT at ₹200.1 crore (₹20,015 lakhs), up 44.2% YoY.

• Basic EPS for Q2FY25 was ₹41.69, compared to ₹20.52 in Q2 FY24; six-month basic EPS was ₹64.87, up from ₹43.47 year-over-year.

Outlook and guidance

• Management remains cautiously optimistic, monitoring macro factors like elections and government policy changes in key markets.

• Strategic focus on healthcare, public sector, Oracle & Salesforce, and AI-driven innovation, with emphasis on account mining and expanding GenAI solutions.

• No formal revenue growth guidance provided; focus remains on consistent growth amid macro uncertainties and seasonal furloughs.

• The group expects synergies and future taxable profits from recent acquisitions, particularly in the US, to support continued growth.

• Margin profile expected to be maintained or improved, with operating levers to offset wage hike impacts.