Mphasis Sees 2% Profit Growth In Q1
The company’s revenue from operations climbed to Rs 3,422 crore, a 4.6 per cent year-on-year (YoY) increase and a slight 0.2 per cent growth from the previous quarter
Mid-tier IT company Mphasis has reported a consolidated net profit of Rs 404 crore for the June quarter, a 2.1 per cent increase from the same period last year. On a sequential basis, net profit rose by 2.9 per cent.
The company’s revenue from operations climbed to Rs 3,422 crore, a 4.6 per cent year-on-year (YoY) increase and a slight 0.2 per cent growth from the previous quarter.
The company also reported a constant currency revenue growth of 0.1 per cent quarter-on-quarter (QoQ) and 3.1 per cent YoY.
CEO and Managing Director Nitin Rakesh expressed cautious optimism about the continued improvement in client demand, supported by a strong deal pipeline. “We are seeing a steady improvement in client demand, and with the strength of our deal pipeline, we remain cautiously optimistic that this trend will continue to improve in our core markets,” he said.
New total contract value (TCV) wins amounted to USD 319 million, with 84 per cent of it coming in new-generation services. Rakesh added that the momentum came in AI-powered deals, leveraging Mphasis' “Savings led Transformation” theme.
Despite these positive indicators, Mphasis’ performance mirrored the broader industry trend of subdued growth among major IT services companies like Tata Consultancy Services, Infosys, Wipro and LTIMindtree. These companies have faced challenges due to a demand slowdown, macroeconomic headwinds and weak discretionary spending.
Operating margin for the quarter increased by 10 basis points sequentially but declined by 40 basis points YoY, settling at 15 per cent. The Banking and Financial Services segment saw a modest 1.1 per cent YoY growth, reaching Rs 1,630 crore, while the Technology, Media, and Telecom segment experienced an 11 per cent rise to Rs 5,490 crore.
Mphasis’ workforce decreased by 1,019 employees during the quarter, bringing the total headcount to 31,645. The company’s utilisation rate improved by one percentage point to 76 per cent. Additionally, earnings per share (EPS) increased by 1.8 per cent YoY, reaching Rs 21.4.
