Thread by @finthusiasts

Key takeaways from Mastek Q3 FY22 business commentary

🔎 Closed 60 Mn deal with NHS spreading across 4 quarters. Largest ever deal in Mastek history.

🔎 NA business as %age of revenue will grow to 30-33% in next 3 years.

#mastek

@nid_rockz @itsTarH

🔎 Has been selective in deals and client mining as focus is on quality customers rather than quantity.

🔎 Management’s focus is to win large long-term multi million dollar contracts (This will result into clear visibility of operating cash flows)

🔎 LTM attrition rate is high but any price increase due to new hiring is partially passed on to customers and certain cost borne by the company.

🔎 One of the Matrix management maintains for operating leverage is no of subcontractors/contractors they hired in overseas

are converted into permanent employees.

🔎 CX/Cloud/Data Intelligence are the areas we are looking for M&A (inorganic growth) shortlisted some potential. Sooner we’re going to hear more on it.

🔎 US Market - We see strong traction as in 2020 our deal size was $500k but now

it has gone upto $5-10 Mn quantum of deal size has increased. (My take: US market growth will be faster compared to UK & EU market)

🔎 Apart from Oracle, we see traction for Azure/Salesforce in Middle East and AWS in UK Market (Nascent stage for now)

🔎 Mastek has beaten some of the large IT and MNC companies in some of the deals ( tells the confidence and trust of clients in Mastek)

🔎 Q3 did 60 go-live/releases and didn’t get any escalations/downtime. (despite high attrition no cost overrun or escalations - Efficiency)

🔎 Oracle business is 70% Implementation and 30% Managed services (50% of customers already moved to Oracle cloud)
Clients looking for differentiated strategy post implementation. Managed services will go to 40-45% in future (gives Cash flow predictability & visibility)

If you like the information useful give a Like or Re-tweet for better reach.

Disc: I’m invested from lower levels.

Thanks for reading ! 🙏🙏