Mastek (MASTEK) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached $103 million (₹869.5 crore), up 9.4% YoY in USD and 10.9% YoY in INR, with PAT at ₹94.7 crore, up 21.8% YoY.

• 12-month order backlog stands at $250 million (₹2,138.7 crore), with a recent $40 million+ Secure Government Services deal to be added in Q4.

• U.K. and North America businesses showed strong momentum, especially in Secure Government Services, healthcare, and private sector segments.

• Interim dividend of ₹7 per share (140%) declared for Q3FY25.

• Recognized in Everest Group Healthcare Provider Digital Services PEAK MatrixⓇ, ISG Top 15 Sourcing Standout, and Gartner Market Guide for Oracle Cloud Infrastructure.

Financial highlights

• Revenue for the quarter was ₹869.5 crore, up 10.9% YoY and 0.2% QoQ; in USD terms, $103 million, up 9.4% YoY.

• Operating EBITDA margin was 16.2%, down 30 bps sequentially, impacted by salary hikes and currency headwinds.

• PAT margin at 10.8% (down 397 bps QoQ, up 90 bps YoY); normalized PAT at ₹88.4 crore.

• Gross cash stood at ₹497 crore after a loan prepayment of ₹45 crore; borrowings reduced to ₹602 crore.

• DSO improved to 89 days, reflecting better collections.

Outlook and guidance

• U.K. expected to maintain high growth, driven by healthcare and government digital programs.

• North America to see steady growth, with full potential expected from H1 next year.

• Strategic focus on healthcare in the US, public sector in the UK, Oracle & Salesforce, managed services, and AI-driven innovation.

• AI-driven efficiencies anticipated to enable revenue growth with slower headcount increase.

• Order backlog growth expected to return to previous 16%-20% YoY levels by FY24 close.