Mastek Ltd.’s revenue rose in the fourth quarter aided by large deals and the U.S. business growth.
The technology company saw its revenue increase 5.37% sequentially to Rs 581.5 crore in the quarter ended March. Its profit rose 5.73% at Rs 88.23 crore, while EBIT margin narrowed to 18.66% from 19.14% in the preceding three months.
Mastek’s 12-month order backlog stood at Rs 1,469.1 crore as of March 2022 compared with Rs 1,271.3 crores at the end of the third quarter. That’s more than 15% sequential growth in rupee and constant currency terms.
The deal win momentum with the U.K. government is expected continue in the medium term because of its improved capabilities and rising spends on digital technologies, Arun Agarwal, global chief financial officer at Mastek, told BloombergQuint’s Niraj Shah in an interview.
The company, he said, is targeting the U.S. revenue contribution to exceed 30% in the next three years from 18.5% currently, led by a strong traction for D2X solutions (‘direct to stakeholder’ delivery of digital transformation), cross-selling/co-selling opportunities and improving deal sizes.
According to analysts at Sharekhan, the company’s margin is likely to stay under pressure in the near term, owing to higher cost on backfilling attrition and retention. But the management is confident that the firm will clock in more than 18% margin for FY23, in line with what it clocked in FY22, the brokerage said.