Mastek Declared Q4 Earnings, Announces 240% Dividend

Mastek Ltd announced its dividend plans along with the results for the quarter that ended March 31, 2023.

Mastek Ltd, a small-cap cloud engineering company, announced its dividend plans along with the results for the quarter that ended March 31, 2023. The company recorded a market cap of Rs 4,835 crore during its closing today.

The Board of Directors recommended a Final Dividend of 240%, i.e. Rs 12.00 per equity share, for the fiscal year ending March 31, 2023, subject to approval by Shareholders at the succeeding 41st Annual General Meeting, and will be paid within 30 days of the Annual General Meeting. For the fiscal year ending March 31, 2023, the total dividend is Rs 19 per share.

For Q4FY23, the firm reported a net income of Rs 708.8 crore, up 18.2% yearly, and revenue from operations of Rs 709.2 crore, up 22% annually. Mastek stated its operating EBITDA increased by 4% yearly to Rs 125.5 crore from 120.7 Cr, while its net profit reached Rs 72.6 crore in Q4FY23, up 8.2% QoQ but down 17.7% year on year. Mastek’s earnings per share (EPS) hit 23.5 in Q4FY23. Throughout the full fiscal year FY23, the company maintained an operational EBITDA margin of 17.8%, owing to our cost-cutting efforts while funding expansion. Its 12-month order backlog stood at 1,794 crores, up 17.2% yearly in constant currency.

It achieved sequential revenue growth, driven by solid in-quarter execution and demand for Digital Engineering, Experience, and Cloud Transformation services. Despite macroeconomic uncertainties, its pipeline and order backlog continues to increase across countries, account mining is producing returns, and it added 28 new clients in the quarter.

As of the end of March 2023, the company has 5,622 employees in total, with 4,036 of them stationed offshore in India and the rest in various on-site locations. As of December 31, 2022, 5,687 persons were employed. Attrition over the previous year was 21.0% in Q4FY23, compared to 23.3% in Q3FY23.

Mastek reported 28 new clients in Q4FY23, with 464 total active clients in Q4FY23, up from 444 in Q3FY23. Mastek said a 12-month order backlog of 1,794.1 crores as of March 31, 2023, up from 1,705.8 crores in Q3FY23, reflecting growth of 5.2% in rupee terms and 4.1% in constant currency terms on a QoQ basis, and 1,469.1 crores in Q4FY22, reflecting growth of 22.1% in rupee terms and 17.2% in constant currency terms on a Y-o-Y basis.
Mastek stated that its total cash, cash equivalents, and fair value of mutual funds were 270.0 crores as of March 31, 2023, down from 324.9 crores at the end of December 31, 2022.

Mastek shares finished today on the NSE at 1,600 per share, down 0.12% from the previous close of 1,601.85.

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