Published on July 22, 2019
Mumbai: Mastek, a global IT player and a trusted partner in complex digital & agile transformation programs in the Government and Global Enterprises worldwide, announced today its financial results for the first quarter of FY20.
On year-on-year basis:
On a quarter-on-quarter basis:
The Company added 9 new clients in Q1FY20. Total client count as of 30th June, 2019 was 154 (LTM) as compared to 157 (LTM) in Q4FY19.
Mastek’s 12 month order backlog was Rs 602.7 crore (£ 68.8 m), as on 30th June, 2019 as compared to Rs 544.9 crore (£ 60.2 m) in Q4FY19; growth of 10.6% Q-o-Q and constant currency growth of 13.4%.
The total cash, cash equivalents and fair value of Mutual Funds stood at Rs 247.0 crore as on 30th June, 2019 as compared to Rs 244.5 crore at the end of 31st Mar, 2019.
Commenting on the results, Mr. John Owen, Group CEO, Mastek, said: “Last quarter, we flagged the challenges we anticipated by Brexituncertainty from our core UK market, which generates around 75% of our global revenue. In this context, Q1 was in line with our reduced expectations. Unfortunately, Brexit uncertainty remains and will continue to dampen UK market conditions. We see this impact in a slowing of discretionary spend and delayed decision making. Demand from UK Government continues to remain strong and robust and we continue to grow quarter on quarter, however clients from the private sector are focusing more on stabilizing their business models,adjusting their spending plans to accommodate all scenarios which has consequently, resulted in a slowdown. We are seeing encouraging growth from our US market however, this is insufficient to off-set the UK in the short- term. The fundamentals for Mastek remain solid and we continue to remain focused on executing our Vision 2020 strategy which will give us an accelerated growth platform beyond FY20.We are confident that Mastek is well positioned strategically in its core markets to capitalize on these future growth opportunities. I take this opportunity to thank the loyal support and trust of our customers and the dedicated and committed team at Mastek who serve them with exceptional pride and honour.”
Mr. Abhishek Singh, Group CFO, Mastek, said: “Under Vison 2020, we have always taken a disciplined and balanced approach ofmanaging our cost structure and this programme has helped us to maintain steady margins despite softer revenue, which is critical onceour growth rates return. We acted quickly and decisively to protect our quality of earnings when we saw our growth plans come under pressure in April, as a result of UK uncertainty on Brexit timelines and deal structure. The highlight for the quarter is the new logoaddition in our US business supporting the growth experienced in the current
quarter. Our robust 12 months order backlog gives us confidence in delivering growth in coming quarters.”