MphasiS Q3 cons net up 7% YoY to Rs 209 cr

Moneycontrol Bureau

Software services provider MphasiS' third quarter (May-July) consolidated net profit rose 7% from a year ago to Rs 209 crore.

Its net sales during the three months period were up 5% to Rs 1355 crore. On a sequential basis, MphasiS' net profit was up 10%, while net sales rose 2%.

The company's EBIT (earnings before interest and tax) margin increased 50 basis points to 16.7% in the third quarter, despite wage increments and promotions in the quarter, it said.

MphasiS, is owned by US-based HP, and poor performance in the parent's enterprise services business has been hurting the company. It has therefore continued efforts to grow direct clients.

MphasiS said its direct business revenue grew 48% year-on-year and 13% sequentially to Rs 633 crore in Q3. Its direct business now contributes 45% of total business, while the rest comes from HP. The direct vs HP mix was 42:58 in the second quarter and 33:67 in the year ago quarter.

"Sustained focus on building our direct business is yielding results," said Ganesh Ayyar, CEO.

MphasiS shares ended at Rs 368.15, up 0.3% on NSE on Wednesday. The results were announced post market hours.