MphasiS to focus on growing direct business to boost profit
Software services provider MphasiS once again disappointed the street with a near 19% decline in consolidated net profit in its first quarter (November-January), but says it is now making all efforts including increasing utilization and growing direct business to ensure profitability.
March 02, 2012 / 15:54 IST
Moneycontrol Bureau
Software services provider MphasiS once again disappointed the street with a near 19% decline in consolidated net profit in its first quarter (November-January), but says it is now making all efforts including increasing utilization and growing direct business to ensure profitability.The company reported a consolidated net profit of Rs 184.84 crore in the first quarter, lower than the Rs 226.67 crore profit it reported a year ago, due to higher tax expenses and continued decline in business from its parent Hewlett-Packard (HP).Apart from the decline in business, the seasonal Christmas shutdown also hurt MphasiS' earnings in the three-month period.The company's consolidated revenue was up 11% year-on-year to Rs 1,367.18 crore. MphasiS says it is committed to profitability going ahead and said the various measures it has taken have started to yield results. In the first quarter, its EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved by 60 basis points to 18.5%. The rupee depreciation aided 40 bps EBITDA margin growth, while operationally margin improved 20 bps, said Ganesh Moorthy, MphasiS CFO."We have taken several measures including cost optimization drive, intense focus on profitability, increased utilization at BPO (business process outsourcing) business
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