BUSINESS
Mphasis, a mid-tier IT solutions provider, reported nearly flat sequential revenue growth in the quarter ended June but managed to expand its bottom line by nearly 3%. Shares of Mphasis surged over 8% intraday to a 52-week high of Rs 3,077.95 as the market reacted positively to the management’s upbeat commentary. The company’s revenue from operations rose 0.2% quarter-on-quarter (q-o-q), reaching Rs 3,422 crore. In constant currency terms, Mphasis reported a 0.1% sequential growth and a 3.1% year-on-year (y-o-y) increase in revenue, according to a company press release. “We are observing a consistent rise in client demand. Coupled with our strong deal pipeline, we are cautiously optimistic about continued improvement in our core markets,” said chief executive officer and managing director Nitin Rakesh in the release. Mphasis secured new total contract value (TCV) wins amounting to $319 million, up from $177 million TCV recorded in the March quarter. Notably, 84% of these new TCVs were for new-generation services. “As AI-enabled platforms gain traction and are integrated into all deal types and solutions, we are experiencing strong growth momentum in AI-powered deals, leveraging our ‘Savings led Transformation’ theme,” Rakesh added. Meanwhile, the operating margin for Mphasis improved by 10 basis points (bps) sequentially, settling at 15% in the June quarter. The management remains optimistic about meeting its FY25 margin guidance of 14.6-16%. In terms of verticals, the banking and financial services sector saw a 1.1% y-o-y growth, reaching Rs 1,630 crore. The technology , media, and telecom segment experienced an 11% growth, totalling Rs 5,490 crore. The company’s headcount decreased by 1,019 employees, bringing the total to 31,645 for the April-June period. However, the utilisation rate increased by one percentage point, reaching 76% in Q1 from the previous quarter’s 75%. .Earnings per share (EPS) for Mphasis rose by 1.8% year-on-year, amounting to Rs 21.4. None
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