Mastek Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: S. Nayak - Anand Rathi Wealth Limited - Analyst : Hello. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 21, 2025 / 3:30AM, MAST.NS - Q4 2025 Mastek Ltd Earnings Call

Question: S. Nayak - Anand Rathi Wealth Limited - Analyst : Hi. Is my voice audible?

Question: S. Nayak - Anand Rathi Wealth Limited - Analyst : One thing you've mentioned about the Oracle business going 50% year on year in the US, what's basically driving that? And is the Stargate JV where Oracle is a part of, is that benefitting you in any way? That was the first question. I have another question, but just --

Question: S. Nayak - Anand Rathi Wealth Limited - Analyst : Yeah, I'll repeat that. The other part was basically I think Oracle is now a part of the Stargate JV in the US, right, with SoftBank and OpenAI. You have something that you're seeing some green shoots of positive demand coming from there, is that one of the things? And the second is what exactly is the data in the AI business? If you could just give a slightly more detailed nuance on that, that'll just be helpful. Over with questions.

Question: S. Nayak - Anand Rathi Wealth Limited - Analyst : Thank you so much.

Question: Amit Chandra - HDFC Securities - Analyst : Yeah, so thanks for the opportunity. So the first question is, obviously we are seeing very strong growth in the NHS segment, but as you mentioned earlier, that the NHS England, the merger can have some near term impact in terms of decision making. So are we seeing any impact of that on the order book that we have, Umang? Like you mentioned, so any or else any impact from the ongoing macroeconomic uncertainty on the order book that we're seeing, any deals that are in the pipeline which are getting delayed or we will -- I'll continue to see the strong growth in the healthcare and the energy segment? So that is the first question. Second one is obviously in the UK margins it has [dimmed], Umang, in this quarter. So do you see is at like one time event or is it a kind of a reset in which -- because the margins that we reported is, I think, the UK margins are five year low and earlier we used to operate plus 20%. And you said that we will know what the deals that are coming in. That are actually at low margin so we can hit 18%, 19% but we are way below that. So what changed in terms of your assumptions, or the like new deals which are coming are at a very low margin?

Question: Amit Chandra - HDFC Securities - Analyst : Okay. And so one last question, where are we in terms of the restructuring like that with, I know like that we had in the image overseas. Are we done with it, or still some part of it is remaining?

Question: Amit Chandra - HDFC Securities - Analyst : EMEA.

Question: Amit Chandra - HDFC Securities - Analyst : Okay sir, thank you and all the best.

Question: Ravi Menon - Macquarie - Analyst : Hey, thank you for the opportunity. Everyone, getting good performance in Europe, but US has actually seen a decline. Not sure if you answer that, I'll -- I missed the first 10, 15 minutes call; apologies for that. Could talk a bit about that what sort of ar, you see--

Question: Ravi Menon - Macquarie - Analyst : Thanks. But the US, it's -- we've seen a decline caught on, although the Europe has done pretty well. So could you talk a bit about how you're seeing demand in the US? Secondly, your top 10, top 5 clients, we've seen almost all the revenue addition that got to come from there and beyond the top 10 there is a bit of weakness. So okay, this is just normally projects sending, or is there a broader set of -- this is just from the macro people canceling projects or putting them on hold?

Question: Ravi Menon - Macquarie - Analyst : Thanks, Umang. As a follow up, North America, are you seeing continued success with the Blue Cross Blue Shield sort of customers? I recall that we had been hoping to replicate the set up that we want with one of them.

Question: Ravi Menon - Macquarie - Analyst : And could you tell us a bit about the other verticals that you are hopeful about in the US and what are you trying to at least put business and efforts?

Question: Ravi Menon - Macquarie - Analyst : Thanks. One last question for me on the AI side, but there is an opportunity on business use cases, but are you seeing at least your major customers ask you for significant productivity benefits and commit to that in new deals or even existing book of business?

Question: Ravi Menon - Macquarie - Analyst : And the NHS or the UK government too, are you seeing these sort of programs?

Question: Ravi Menon - Macquarie - Analyst : Thanks again and best of luck. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 21, 2025 / 3:30AM, MAST.NS - Q4 2025 Mastek Ltd Earnings Call

Question: Varun Kulkarni - InCred AMC - Analyst : Good morning, sir. Thank you for the opportunity. One question on the working capital, basically understand that we have a heavy exposure to the UK government. So -- but there was a considerable increase in the rates receivable for this fiscal year, so I would just appreciate a comment on that, like why was that the case this year?

Question: Varun Kulkarni - InCred AMC - Analyst : So there was a reduction in the operating cash flow. That is why I asked this question because the working [cap debtor days] have also increased. If I see last year the debtor is to that [67] and as of midst of [ten, eight] months, so just wanted to understand that.

Question: Varun Kulkarni - InCred AMC - Analyst : Sure. And one more question was that, pardon me if I want to use this, so what would be the percentage of the next new deals, so and how do we anticipate that going forward for this fiscal?

Question: Varun Kulkarni - InCred AMC - Analyst : Got that. And in absolute dollar terms, would you be able to ascribe a value on [this so].

Question: Varun Kulkarni - InCred AMC - Analyst : Sure, yeah. These are the two questions from my side. Yeah, that's the one. Thank you.