Mastek has reported a strong performance for the quarter ending March 2025, with a revenue increase of 16.1% compared to the same period last year. The company’s total revenue, including other income, rose to Rs 905.42 crore, up from Rs 779.01 crore in Q4FY2024.
However, despite the growth in sales, Mastek’s profit margin has decreased slightly. The operating profit margin dropped from 16.05% to 15.32%, leading to a 1.35% decrease in operating profit, which now stands at Rs 138.75 crore.
The company’s employee costs also reduced slightly, from 53.87% of total costs to 52.74%. On the other hand, other expenses increased from 30.09% to 31.93%. Mastek’s other income, which includes non-operating earnings, fell by 62.20% to Rs 3.58 crore.
While the company’s operating profit decreased, its profit before tax (PBT) increased by 21.5% compared to Q4FY2024, reaching Rs 114.05 crore. However, the net profit attributable to the company owners declined by 14.4% to Rs 81.07 crore.
Key Financials:
- Revenue: Rs 905.42 crore (16.1% increase YoY)
- Operating Profit: Rs 138.75 crore (1.35% decline QoQ)
- Net Profit: Rs 81.07 crore (14.4% decrease YoY)
In terms of assets, Mastek’s cash and bank balance grew to Rs 461.47 crore, up from Rs 382.61 crore in March 2024. The company’s total investments also increased to Rs 178.03 crore from Rs 93.81 crore.
Full-Year Financial Overview:
Mastek reported an overall annual revenue of Rs 3,455.23 crore for FY2025, up 13.1% from FY2024. The company’s operating profit also saw a rise of 7.43%, reaching Rs 546.45 crore. Despite a decrease in profit margin for the year, net profit grew by 25.19% to Rs 375.93 crore.
Order Book and Dividend:
Mastek’s order backlog as of March 31, 2025, reached Rs 2,290.9 crore, reflecting a 5.6% growth YoY. The company’s strong order book and demand for services in digital engineering, cloud computing, and AI were key factors driving this growth.
The company’s board has recommended a final dividend of 320%, which amounts to Rs 16 per share, bringing the total dividend for the year to 460%, up from 380% in the previous year.
Management’s View:
Umang Nahata, Mastek’s CEO, expressed satisfaction with the company’s performance, highlighting strong growth in revenue and profit. He pointed out that Mastek continues to focus on key areas such as data, AI, and cloud services, with strong demand from clients in healthcare and government sectors. He also noted that despite macroeconomic challenges, Mastek’s focus on execution and client relationships positions the company for sustainable growth in the future.
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In summary, Mastek had a good quarter with increased revenue, but faced challenges with margins and profit. The company remains optimistic about its growth prospects in the coming year.
