Mastek’s Q3FY25 performance affected by lower sequential profit, resilience shown in nine-month figures

Mastek Ltd. reported its Q3FY25 results today, revealing a mixed performance. The company recorded revenue of ₹869.5 crore for the quarter ending December 31, 2024, marking a year-on-year (YoY) increase of 10.9 per cent. However, sequential revenue growth was marginal at 0.2 per cent. Net profit stood at ₹94.7 crore, rising 21.8 per cent YoY but dropping significantly by 26.4 per cent from Q2FY25.

Operating EBITDA for the quarter was ₹140.7 crore, translating to a margin of 16.2 per cent, slightly lower than 16.5 per cent in Q2FY25. The decline in profitability reflects the impact of wage hikes and seasonal furloughs. Mastek’s twelve-month order backlog grew by 3.4 per cent YoY to ₹2,138.7 crore.

For the nine months ended December 31, 2024, Mastek posted revenue of ₹2,549.8 crore, up 12.1 per cent YoY. Net profit for this period was ₹294.9 crore, registering an impressive 36.2 per cent YoY growth. The company attributed this growth to deeper account mining and improved revenue per client. Despite these gains, the company’s quarterly performance indicated challenges in sustaining momentum.

The healthcare vertical stood out, recording 19.6 per cent quarter-on-quarter (QoQ) growth, while other sectors showed stability. Mastek also declared an interim dividend of ₹7 per share, underscoring its commitment to shareholder returns.

CEO Umang Nahata emphasised the company’s focus on integrating AI into its services to enhance delivery efficiency and client solutions. He highlighted plans to expand AI-based platforms and solutions over the next year.

Looking ahead, CFO Arun Agarwal reiterated Mastek’s aim to maintain disciplined execution and prudent resource allocation amid geopolitical uncertainties and market challenges.

The shares of Mastek Ltd closed at ₹2,760, up by ₹27.10 or 0.99 per cent on the NSE today