MphasiS is set to announce its Q4 results today. A CNBC-TV18 poll expects PAT to decline 10% at Rs 175 crore while rupee revenue growth might see a marginal 3% uptick at Rs 1330 crore.
The company has been one of the weakest stories in the IT space given the tough times that parent HP is going through. It has neither been able to grab any large deals nor does it seem capable of being able to retain the multi-year deals that are up for renewal in FY12. The company seems to be continuously losing share to other Indian offshore vendors. In fact, a report by Motilal Oswal says that Q4 volumes for Mphasis could decline 4% quarter-on-quarter in the HP channel.
MphasiS recently acquired Wyde that brought in about USD 4.5 million, but even that might not be able to offset the slack in volume growth in the HP channel, the report says.
Additionally, MphasiS has also been hit by high attrition of 25%, the highest in the industry. This coupled with low growth makes the targeted margin growth of 15-17% extremely challenging for the company.
