Mastek Ltd, a leading IT services company, recently reported its Q3FY25 results, showcasing a mixed performance. While the company saw a year-on-year increase in revenue of 10.9%, sequential revenue growth was minimal at 0.2%. Net profit rose by 21.8% YoY but dropped significantly by 26.4% from the previous quarter.
The operating EBITDA for the quarter was ₹140.7 crore, with a margin of 16.2%, slightly lower than the previous quarter. Mastek’s twelve-month order backlog grew by 3.4% YoY to ₹2,138.7 crore.
For the nine months ended December 31, 2024, Mastek recorded a revenue of ₹2,549.8 crore, up by 12.1% YoY. Net profit for this period showed an impressive growth of 36.2% YoY, attributed to deeper account mining and improved revenue per client. The company highlighted challenges in sustaining momentum based on its quarterly performance.
The healthcare vertical was a standout performer, showing a QoQ growth of 19.6%, while other sectors remained stable. Mastek also declared an interim dividend of ₹7 per share, focusing on shareholder returns.
CEO Umang Nahata emphasized the company’s integration of AI into its services to enhance delivery efficiency and client solutions. Plans to expand AI-based platforms and solutions over the next year were also highlighted.
Looking ahead, CFO Arun Agarwal reiterated Mastek’s commitment to disciplined execution and prudent resource allocation amid geopolitical uncertainties and market challenges.
Mastek Ltd’s shares closed at ₹2,760 on the NSE, reflecting a 0.99% increase. The company’s performance in the current quarter and strategic focus on AI integration indicate a move towards sustainable growth and innovation in the IT services sector.
