See end of de-growth in Digital Risk: MphasiS

Speaking about the third quarter numbers in a concall to CNBC-TV18,  Ganesh Ayyar, CEO, MphasiS said he sees end of de-growth from Digital Risk on back of two new wins that came through in the third quarter. The two wins which amount to USD 50 million will boost revenues, he added

HP-owned IT services firm MphasiS reported a consolidated net profit of Rs 161.96 crore for the third quarter ended December 31, 2014. The firm had posted a net profit of Rs 180.60 crore for the three months ended January 31, 2014, it said in a BSE filing.Below is the transcript of the concall interview to CNBC-TV18’s Reema TendulkarQ: We have seen a very sharp decline in your digital risk revenues, it is down more than 30 percent on quarter-on-quarter (QoQ) basis. What is the trajectory of digital risk going ahead? A: Digital risk did have a significant decline. It has to do with the mortgage industry, number of transactions that are taking place in US residential mortgage. The good news is we have added two new wins in Q3 so in terms of looking ahead we will see that our revenues will start climbing in Digital Risk. The two wins together constitute about USD 50 million of contract value so we are confident about growth from hereon for digital risk. Q: This is going to be the end of de-growth from Digital Risk? A: That is right. Q: On the HP Zydus business, in FY15 you had indicated that the HP revenues could de-grow by 15-20 percent, what is the outlook for the HP channel in FY16, can we expect the de-growth to continue even next year? A: I certainly would like to see can we stabilise that business and grow it back. At this point of time for almost 12 quarters in a row we have experienced decline in our business with HP. We have to figure out how to crack it; we have not managed to crack it. So at this point of time instead of putting a specific number, I don’t have anything to report which highlights the fact that we have stabilised it and we will start growing back. Last 12 quarters suggests that the decline will continue.