Mastek posted its fourth quarterly earnings for March 2022. The company reported a steep rise in net profit at Rs 20.06 crore during the quarter under review as compared to Rs 5.54 crore in the year-ago period. The company’s net sales also rose by 16.4 percent to Rs 68.48 crore from Rs 58.83 crore in March 2021.

To discuss its Q4 earnings in detail, CNBC-TV18 spoke to Hiral Chandrana, Global CEO, Mastek.

Chandrana affirmed that he is seeing some signs of stabilisation in attrition. He pointed out that attrition in Q4 was at 5.7 percent.

"The attrition at a quarterly level did stabilise for us. We were at 5.7 percent in Q4. So while for the last 12 months, it is at 28 percent but we are seeing a trend or trajectory of some stabilization. I don't want to get satisfied at this point right now because it is a continuous process. Our HR and people teams have done a fantastic job; our business teams are working very closely with our employees. But we did see some stabilisation in Q4 compared to our Q3 attrition," he said.

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He explained that Mastek’s talent attraction and recruitment has improved. Chandrana, however, warned that margin will see some pressure owing to wage inflation.

"Our talent attraction and recruiting ability has improved over the last six months. We're onboarding a lot more freshers, interns as well as laterals and as far as retention strategies are concerned, we do see some level of stabilisation. We need to see about two, three quarters of consistent stabilisation for us to stay calm there. Margins will continue to be under pressure because of the talent and the cost, and inflation that is impacting the entire industry," he added.

He believes that a strong focus on execution is getting demonstrated in the company’s margin.

"We've been communicating strong execution focus- this is what's getting demonstrated in the margins," he said.

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Chandrana stressed that the company has also realigned its leadership structure. Despite the macro level uncertainties, he is seeing strong customer demand.

"We did a realignment of our leadership structure recently, which has been yielding some positive results. While there are macro level uncertainties, we have seen a really good uptick in demand," he said.

Going ahead, the company plans to invest in developing capabilities and going to the US. He mentioned that the company is eyeing assets for acquisition purposes. He explained that Mastek is in the process of zeroing in on a substantial acquisition in the next few months.

"We do want to invest back in the business and there are certain capability areas, certain markets that we want to grow exponentially like America and we will continue to make the right investments in both capabilities as well as our go-to market. We are spending significant time on looking at assets. As we have communicated in the past cloud platforms, Data Cloud, as well as CX and automation areas are where we are focused on; and definitely in the next couple of months we are looking at zeroing in on something substantial," he explained.

Watch the video for the full interview.

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First Published:Apr 20, 2022 12:12 PM IST