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Last Updated : Jan 31, 2017 11:02 AM IST | Source: CNBC-TV18

Mphasis Q3 profit seen down 6%, HP revenue may be flat

Software firm Mphasis' third quarter profit is expected to fall 6.2 percent sequentially to Rs 197.5 crore but revenue may increase 0.5 percent to Rs 1,526 crore.

 
 
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Software firm Mphasis' third quarter profit is expected to fall 6.2 percent sequentially to Rs 197.5 crore but revenue may increase 0.5 percent to Rs 1,526 crore.


According to average of estimates of analysts polled by CNBC-TV18, dollar revenue is likely to be flat at USD 226 million against USD 226.77 million in previous quarter.


EBIT (earnings before interest and tax) is seen falling to Rs 220 crore from Rs 232.3 crore and margin may shrink 90 basis points to 14.4 percent in the quarter gone by, QoQ due to impact of wage hike (160 bps) partly offset by operational improvements.

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The company after Q2 earnings reiterated its margin band of 14-16 percent for FY17.


Analysts expect revenue from HP (that contributed 24 percent of revenue) flat and expect sequential decline in Digital Risk. They see growth in Direct mature (that is non-HP and non-Digital Risk business).


Investors focus will remain on deal wins in direct channel, timing of synergies from Blackstone acquisition, BFSI and margin outlook.


The board of directors will also consider a buyback of shares today. It had already announced a dividend of Rs 20 per share.



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First Published on Jan 31, 2017 08:02 am
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