Mphasis Q1 net profit dips 10.6% to Rs 156.26 crore

HP-owned IT services firm Mphasis on Wednesday posted a 10.6 percent dip in net profit at Rs 156.26 crore for the quarter ended June 30, 2015. This is against a net profit of Rs 174.79 crore in the same quarter last fiscal, Mphasis said in a statement. Mphasis also announced that it has signed two definitive agreements for sale of India domestic BPO business.

"During the quarter ended June 30, 2015, the Board of Directors of Mphasis and Msource India have approved sale and transfer of some contracts of the domestic BPO business, which is not a separate major line of Group's business," it said. Accordingly, the Group has entered into definitive agreements with Hinduja Global Solutions and Karvy Data Management Services for sale of a portion of domestic BPO business as a going concern on slump sale basis for a lump sum consideration of Rs 17 crore and Rs 2.75 crore, respectively, it said. The company registered almost flat revenues at Rs 1,496.41 crore in the quarter under review from Rs 1,490.16 crore in the April-June 2014 quarter.

Mphasis continues to build strong pipeline with robust deal wins of USD 76 million total contract value in Q1 FY2015-16 providing good revenue visibility in Direct International business, it said. Its cash and cash equivalents increased by Rs 152.8 crore during the quarter to Rs 2,916.8 crore. "These results reinforce our confidence in growing Direct International faster than market.

This quarter saw strong growth and continued momentum in new wins. Good start to FY'16," Mphasis Chief Executive Officer Ganesh Ayyar said.