Q4 Financial Performance Shows Mixed Results Amid Strong Revenue Growth
Mastek Ltd, a leading IT services company, reported a 14% decline in its consolidated net profit for the fourth quarter of fiscal year 2024-2025 (Q4 FY25). The company’s net profit stood at ₹81.07 crore, compared to ₹94.41 crore in the same quarter of the previous year. This dip in profit comes despite an impressive rise in revenue, reflecting the company’s ability to generate growth even in the face of profit pressures.
Revenue from operations during the quarter increased by 16%, reaching ₹905.42 crore, up from ₹779.73 crore in the corresponding quarter of the previous year. The company also reported an operating EBITDA of ₹138.8 crore for Q4, highlighting a positive operational performance despite the profit contraction.
Highlights:
Consolidated net profit for Q4 FY25: ₹81.07 crore (down 14% y-o-y)
Revenue from operations in Q4 FY25: ₹905.42 crore (up 16% y-o-y)
Operating EBITDA for Q4 FY25: ₹138.8 crore
Year-over-year (YoY) net profit increase of 21% for FY25 to ₹375.93 crore
Annual Performance Shows Significant Profit and Revenue Growth
On an annual basis, Mastek showed a remarkable improvement in its financial performance. The company’s net profit surged by 21% to ₹375.93 crore for the fiscal year ending March 31, 2025, compared to ₹310.97 crore in the previous year. Revenue from operations also grew by 13.1% in rupee terms, reflecting strong demand across Mastek’s service lines, particularly in key markets such as the UK and Europe.
The growth in annual profits and revenue highlights the company’s ability to execute efficiently across different geographies and its focus on innovation across verticals. Mastek has continued to enhance its capabilities in data and artificial intelligence, ensuring it stays ahead of the curve in the rapidly evolving IT services landscape.
Highlights:
FY25 net profit: ₹375.93 crore (up 21% YoY)
FY25 revenue growth: 13.1% in rupee terms
Strong annual growth driven by disciplined execution and innovation
Client Acquisition and Attrition Metrics Remain Stable
Mastek’s client acquisition during Q4 FY25 was positive, with the company adding 11 new clients, bringing its total active clients to 348. However, this was a slight decrease from 351 active clients in the previous quarter (Q3 FY25). Despite this small drop, the company continues to expand its client base, particularly in high-demand sectors such as healthcare and commercial services.
The attrition rate for the last twelve months stood at 19.3% in Q4 FY25, improving marginally from 20.1% in Q3 FY25. This reduction in attrition indicates the company’s efforts to improve employee retention and foster long-term talent engagement, crucial for maintaining operational stability.
Highlights:
11 new clients added in Q4 FY25
Total active clients: 348 in Q4 FY25 (slightly down from 351 in Q3 FY25)
Attrition rate for FY25: 19.3%, down from 20.1% in the previous quarter
Cash Reserves and Financial Health Show Robust Position
Mastek reported a significant improvement in its cash reserves, with total cash, cash equivalents, and mutual fund investments standing at ₹622.2 crore as of March 2025. This is a marked increase from ₹497.0 crore in December 2024, reinforcing the company’s solid financial position and its ability to invest in future growth opportunities, as well as return capital to shareholders.
Highlights:
Cash reserves as of March 2025: ₹622.2 crore
Significant improvement from ₹497.0 crore in December 2024
Final Dividend Announcement Reflects Confidence in Financial Health
The board of Mastek Ltd has recommended a final dividend of ₹16 per equity share for the fiscal year 2024-2025, demonstrating the company’s confidence in its ongoing growth and strong financial standing. The final dividend is expected to be well-received by shareholders, reflecting Mastek’s commitment to delivering value to its investors.
Highlights:
Recommended final dividend: ₹16 per equity share for FY25
Reflects company’s strong financial health and shareholder value focus
CEO’s Remarks on Strategic Focus and Sectoral Growth
Umang Nahata, CEO of Mastek, provided insights into the company’s strategic focus for the year. He noted, “We closed FY24-25 with a strong annual revenue and PAT growth of 13.1% and 20.9% respectively in rupee terms, driven by disciplined execution across geographies and innovation across all service lines.” He emphasized the company’s continued investment in expanding its capabilities in data and AI, ensuring it can provide cutting-edge solutions to clients.
Mastek’s core business, particularly in the UK, Europe, and Oracle in the US, continues to grow strongly, especially in the healthcare and commercial sectors. This focus on high-demand verticals is expected to drive continued success for the company in the coming quarters.
Highlights:
CEO Umang Nahata highlights strong growth across geographies
Focus on data, AI, and core sectors like healthcare and commercial
