“There is no clarity on how to charge tariffs on services because services encompass various elements,” he explained. “Currently, the focus remains on trade, which is more straightforward to regulate.”
Mastek recently secured a significant order worth nearly £85 million ($100 million) from a UK public service department, to be executed over two years. The contract includes digital transformation and managed services, ensuring both one-time revenue and continued long-term engagement.
Mastek’s UK market, which contributes 57% of the company’s revenues, has seen notable growth with major contracts, including a $40 million win from an existing client and a $10 million contract with the UK government. Desai is confident about a strong performance in the UK, with the potential for double-digit growth.
Also Read | Mastek appoints Umang Nahata as CEO to drive next phase of growth
Despite a challenging October-December 2024 quarter, due to extended furloughs, Mastek reported a 22% year-on-year (YoY) increase in profits and a 16.5% rise in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Desai noted that while revenue fluctuations occur due to the nature of project-based business, annual growth trends provide a clearer picture. He remains on track for a positive trajectory in the January-March 2025 quarter, he said.
In 2025-26 (FY26), Mastek aims to outpace industry growth rates. The company has recorded an 18% compounded annual growth rate (CAGR) over the past four years, exceeding the industry’s 11-12% growth in rupee terms.
Also Read | Mastek targets margin improvement to 19% within two years
“We intend to continue growing faster than the industry average,” Desai affirmed, adding that Mastek is making strategic moves in multiple geographies, including the US, where it has secured new contracts in the healthcare and education sectors.
The company, which has a current market capitalisation of ₹6,754.01 crore, has seen its shares lose more than 23% over the last year and are currently trading at ₹2,231 as of 3:31 pm on the NSE.
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