HP-owned IT services firm MphasiS today said its consolidated net profit declined by 6.8 percent to Rs 176.54 crore for the quarter ended April 30, 2013. This is against a net profit of Rs 189.43 crore for the same quarter last year, MphasiS said in a statement.
The decline in net profit was on account of lower other income as the company deployed funds towards the acquisition of Digital Risk as well as towards the payment of dividend, MphasiS said in a statement.
The company's consolidated revenues grew 5.7 percent to Rs 1,405.42 crore for the second quarter of 2013 from Rs 1,328.87 crore in the year-ago period. It follows a November-October financial year.
MphasiS is witnessing good traction in the direct business in the US with a growing pipeline testimony to the company's hyper-specialisation approach, MphasiS Chief Executive Officer Ganesh Ayyar said.
"The acquisition of Digital Risk has gone well; we have won a large USD 60 million TCV contract from a BFSI client with potential upside of USD 40 million based on further volume. We are enthused by growth prospects going forward," he added. This is the largest contract ever secured in Digital Risk's history.
MphasiS acquired US-based Digital Risk in an all-cash deal valued at USD 175 million with an additional earn-out component.
Digital Risk is one of the largest independent providers of solutions related to risk, compliance and transaction management to the US mortgage market. Meanwhile, MphasiS' revenues from Banking and Capital Market segment stood at Rs 510.53 crore, while those from insurance was Rs 165.72 crore, IT, Communication and Entertainment (298.26 crore) and emerging industries was Rs 448.23 crore.
Shares of MphasiS today rose by 2.63 percent to Rs 447.05 apiece on the BSE.
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