Q3 2025 Mastek Ltd Earnings Call Transcript
Key Points
- Mastek Ltd (BOM:523704) reported a 9.4% year-over-year revenue growth in US dollar terms, reaching $103 million for the quarter.
- The company's 12-month order backlog stands at $250 million, with a recent $40 million deal further boosting the backlog by 8-9%.
- The UK business is performing well, particularly in secured government services and healthcare, with significant new deals and renewals.
- Mastek Ltd is focusing on an AI-first approach, launching new AI initiatives such as ADOPT.AI and Lightbeam, which are expected to enhance service delivery.
- The company has improved its cash position, with gross cash at INR497 crores, and reduced its borrowing from INR641 crores to INR602 crores.
- The furlough period had a more pronounced impact than expected, leading to flat revenue growth in constant currency terms.
- Operating EBITDA margin decreased by 30 basis points quarter-on-quarter, affected by salary hikes and currency headwinds.
- The AMEA region's margins were significantly low at 1% this quarter, with plans to improve them to double digits over the coming quarters.
- The company's utilization rate dropped to 74.4% from 78.4% in the previous quarter, reflecting higher leaves and client furloughs.
- There is a decline in the digital commerce and experience business, attributed to a shift away from Oracle Commerce and Oracle ATG.
Ladies and gentlemen, good day, and welcome to the Mastek Limited Q3 FY25 earnings conference call, hosted by E&Y Investor Relations. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Pratik Jagtap from EY Investor Relations. Please go ahead, sir.
Thank you, Ryan. Good day to all of you. Welcome to Q3 FY25 earnings call of Mastek Limited. The results and presentation have already been mailed to you, and you can also view it on our website, www.mastek.com.
To take us through the results today and to answer your questions, we have the top management of Mastek, represented by Umang Nahata, CEO; and Arun Agarwal, CFO. Umang will start the call with a business update, which will be followed by Arun providing the financial update for the quarter. Post that, we will open the floor for Q&A session.
As usual, I would like to remind you that anything said on this call
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