Mastek To Tap Public Sector Clients In US, UK For Growth In Second Half
Agarwal attributed Mastek's order book buildup to the company signing high-value orders, especially in the UK's public sector.
IT services provider Mastek Ltd. will focus on the US and UK public sectors to drive growth opportunities over the next six months, according to the company’s Chief Financial Officer Arun Agarwal.
While delivering an outlook for the year, after the company posted second quarter results on Oct. 18, Agarwal told NDTV Profit that the company sees growth opportunities in the generative artificial intelligence space.
“The US and UK public sector is very important to us. We will continue to invest in this sector and we expect a lot of good deals, especially in health and also the secured government side coming up in the coming quarters. We are very positive from the UK public sector perspective,” he said.
Agarwal added, “We want that service lane to grow much faster than the company average. A lot of our investments will get into Gen AI and related sections. Not just to external customers but also internally we are investing heavily in this.”
Mastek's September quarter results witnessed an 80% quarter-on-quarter rise in net profit at Rs 129 crore versus Rs 71.5 crore in Q1FY25. Its revenue expanded 6.7% at Rs 867 crore in the July–September quarter as compared to Rs 813 crore last quarter.
Earnings before interest and taxation, or EBIT, was up 18.7% at Rs 123 crore during Q2 as compared to Rs 104 crore in the April–June quarter. Margins stood at 14.2% in the September quarter against 12.8% in the previous quarter of the current fiscal.
Agarwal said that the growth in the company’s financial performance in Q2 was largely broad-based.
“We have not only grown 6.7% quarter-on-quarter, we have also grown 13.3% year-on-year. The growth has come from across the UK, and the US has bounced back significantly. Our focus on improving the quality of clients and the revenue is working well,” he said.
The CFO noted that the buildup in Mastek's order book was happening at a good momentum.
“In the UK, we continue to sign high-value orders, especially in the public sector where we have been present for quite a long time. The US also feels exciting although there is caution in the market,“ he added.
Shares of Mastek Ltd. closed Monday's session 4.59% lower at Rs 2,879 apiece, while benchmark Nifty 50 closed with a 0.29% decline at 24,781.10.
