IT player Mphasis disclosed a 2.9 per cent dip in net profit for the fourth quarter of fiscal year 2024, recording Rs 393.22 crore compared to Rs 405.31 crore in the corresponding quarter of the previous year.
The decline was primarily due to a 10 per cent year-over-year (YoY) decrease in its banking and financial services (BFS) segment, which accounts for nearly half of the company's revenues. Despite this, Mphasis experienced a 5.2 per cent increase in profit from the previous quarter, indicating a potential recovery.
During the fourth quarter, Mphasis achieved significant traction in its new business deals, securing a total contract value (TCV) of USD 177 million in direct deals. About 77 per cent of these new deals were in next-generation services, reflecting the company's strategic shift towards innovative, high-growth areas. This development is part of a broader effort to diversify its revenue streams and reduce dependency on traditional sectors that have shown volatility.
The company's geographical performance presented mixed outcomes. While growth remained muted in the Americas at 0.4 per cent YoY and 2.9 per cent quarter-over-quarter (QoQ), the Europe, Middle East, and Africa (EMEA) region reported a modest 2.1 per cent increase YoY, although it saw a 3.1 per cent sequential decline. The rest of the world continued to show degrowth across both metrics.
On FY24 front, Mphasis reported a decrease in its annual profits and revenues for the fiscal year ending March 2024, despite achieving notable new contract wins. The company's net profit fell by 5 per cent to Rs 1,554.82 crore from Rs 1,637.92 crore in the previous fiscal year. This decline was accompanied by a 3.7 per cent decrease in revenue, down to Rs 13,278.52 crore from Rs 13,798.5 crore in FY23.
