Mastek gains after Q1 PAT rises 6% QoQ to Rs 80 cr

Mastek rose 1.83% to Rs 2,538.45 after the company's consolidated net profit rose 6% to Rs 80.20 crore on 6.9% increase in total revenue from operations to Rs 516.50 crore in Q1 June 2021 (Q1 FY22) over Q4 March 2021 (Q4 FY21).

Consolidated total EBITDA grew 7.6% to Rs 117.50 crore in Q1 FY22 as against Rs 109.20 crore in Q4 FY21. EBITDA margin improved to 22.5% during the quarter compared with 22.4% during Q4 March 2021.

In constant currency, revenue from operations rose 4.3% Q-o-Q (quarter-on-quarter) and 27.2% Y-o-Y (year-on-year) to $70.2 million in Q1 FY22.

Mastek added 40 new clients in Q1 FY22. The total client count as of 30 June 2021 stood at 651 (LTM) as compared to 639 (LTM) in Q4 FY21.

The 12 month order backlog was at Rs 1,177.70 crore ($158.40 million) as on 30 June 2021 as compared to Rs 1,130.40 crore ($154.60 million) in Q4 FY21, registering a growth of 4.2% in rupee terms and 2.1% in constant currency terms on Q-o-Q and Rs 764.50 crore ($101.30 million) in Q1 FY21, reflecting a growth of 54% in rupee terms and 45.5% in constant currency terms on Y-o-Y basis.

As on 30 June 2021, Mastek had a total of 4,302 employees, of which 3,181 employees were based offshore in India while the rest were at various onsite locations. The employee count at the end of 31 March 2021 was 3,792.

The total cash, cash equivalents and fair value of Mutual Funds stood at Rs 959.80 crore as on 30 June 2021 as compared to Rs 848.90 crore at the end of 31 March 2021. Net Cash balance (after adjusting for debts) stood at Rs 702.90 crore as on 30 June 2021 as compared to Rs 588.60 crore at the end of 31 March 2021.

Arun Agarwal, global chief financial officer, Mastek, said: "Q1FY22 has been another quarter of consistent financial performance. We reported Rs 516.5 crore revenue, reflecting a growth of 6.9% sequentially, demonstrating the strong fundamentals of our business in these challenging times. Despite increase in costs due to onshoring, promotions and investments in talents during the quarter, we have been able to maintain healthy operating EBITDA margin of 21.8%. We continue to maintain healthy free cash flow of Rs 115.4 crore during the quarter. We are confident that with increasing demand for digital services, strong order backlog and strategic investments, we are well placed to sustain the growth momentum, create values for our customers and maximize value for our shareholders."

Mastek is an enterprise digital transformation specialist that engineers excellence for customers in UK, US, Middle East, Asia Pacific and India.

The scrip hit an all-time high of Rs 2,600 in intraday today.

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