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Informist, Friday, Apr. 25, 2025

 

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--Mphasis Jan-Mar consol net profit INR 4.46 bln 
--Analysts saw Mphasis Jan-Mar consol net profit INR 4.38 bln 
--Mphasis Jan-Mar consol net profit INR 4.46 bln vs INR 4.28 bln qtr ago 
--Mphasis Jan-Mar consol revenue INR 37.10 bln vs INR 35.61 bln qtr ago 
--Mphasis to pay INR 57 per share dividend for FY25 
--Mphasis FY25 consol net profit INR 17.02 bln vs INR 15.55 bln year ago 
--Mphasis FY25 consol revenue INR 142.30 bln vs INR 132.79 bln year ago 
--Mphasis Jan-Mar direct revenue up 3.8% on qtr in constant currency terms 
--Mphasis Jan-Mar total new contract wins $390 mln vs $351 mln qtr ago 
--Mphasis Jan-Mar operating margin 15.3%, unch on qtr 
--Mphasis won 2 large deals in Jan-Mar, 13 large deals in FY25 
--Mphasis: Targeting EBIT margin within band of 14.75%-15.75% 
--Mphasis FY25 direct revenue up 5.6% on year in constant currency terms 
--Mphasis Jan-Mar BFS pipeline up 70% YoY, non-BFS pipeline up 99% YoY 
--Mphasis: Total new contract value in Jan-Mar highest in past seven quarters 
--Mphasis Jan-Mar BFS direct revenue up 7.2% on qtr in constant currency 
--Mphasis Jan-Mar direct sales from Americas up 3.7% QoQ in constant currency 

By Gopika Balasubramanium

 

MUMBAI - Mphasis Ltd.'s sequential revenue growth in the March quarter was the fastest in 12 quarters on a consolidated basis. A strong growth in the company's banking and financial services, and technology, media, and telecommunications verticals, along with ramp-up of large deals, and positive impact of the reversal of furloughs drove the information technology company's growth during the quarter.

 

The company's consolidated revenue for the quarter was at INR 37.10 billion, up 4.2% on quarter, and nearly 9% on year. This was also higher than the consensus estimate of INR 37.04 billion. In constant currency terms, direct revenue was up 3.8% on quarter and 6.8% on year. 

 

The consolidated net profit, attributable to shareholders, rose over 4% sequentially to INR 4.46 billion and was slightly better than the Street's expectations of INR 4.38 billion. On a year-on-year basis, the net profit rose 13.6%. The company's consolidated net profit grew for the fifth consecutive quarter.

 

The company expects its earnings before interest and tax margin to be within a band of 14.75%-15.75%. For 2024-25 (Apr-Mar), the operating margin of Mphasis improved 20 basis points on year to 15.3%. For Jan-Mar, the operating margin was at 15.3%, unchanged from the previous quarter.   

 

The company's total contract value for the quarter for its direct business grew to $390 million, up 11% on quarter, and it was the highest contract value in the last seven quarters. For FY25, the total contract value was $1.27 billion. The company added two large deals in the March quarter and in the full financial year, it added 13 large deals.

 

For FY25, the company's consolidated net profit grew 10% on year to INR 17.02 billion. Consolidated revenue for the year was 7% higher on year at INR 142.30 billion. Its direct revenue in the financial year grew 5.6% in constant currency terms to INR 136.60 billion. 

 

In Jan-Mar, the company's banking and financial services vertical, which is its largest vertical, grew 7.2% sequentially to $215 million. Its technology, media, and telecommunications vertical recorded the highest growth among the segments and sales rose nearly 10% on quarter to $77 million.

 

Revenue growth in the banking and financial services vertical was driven by wallet share gains and growth in new accounts, the company said, adding that the continued wins and conversions drove revenue growth in its technology segment.

 

The revenue from insurance vertical was unchanged on quarter at $49 million. Terming its insurance segment as "growth engine", the company expects to post strong growth in FY26 on the back of robust contract value and deal pipelines. Sales from its logistics and transportation vertical fell over 7% on quarter in constant currency terms to $47 million. This decline was likely due to macroeconomic uncertainties, Mphasis said.   

 

For FY25, the technology vertical grew the most and recorded a 13.5% growth at $283 million. This was followed by insurance vertical that grew 9% on year to $192 million. The banking and financial services vertical sales grew 8% on year to $817 million.  

 

For Jan-Mar, the company's sales from Americas, which account for 82% of total sales, rose to $353 million, up 3.7% on quarter and over 7% on year in constant currency terms. Sales from Europe, West Asia, and Asia only saw marginal growth sequentially, and sales declined nearly 5% from the same period previous year. For FY25, sales from the US grew 6% on year to $1.37 billion, while those from Europe, West Asia, and Asia declined nearly 3% to $177 million.       

 

The company will pay INR 57 per share as dividend for the financial year ended Mar. 31. At 1125 IST, shares of Mphasis traded at INR 2,533 on the National Stock Exchange, up 2.6%.  End

     

Edited by Vandana Hingorani

 

US$1 = INR 85.60

 

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