Mphasis stock climbs to 52-week high on upbeat mgmt commentary, strong deal wins

Mphasis shares have risen around 34 percent in the past three months.

Mphasis stock surged over 8 percent to a 52-week high of Rs 3,077.95 on July 26, as investors cheered the management's upbeat commentary following its April-June quarter results.

At 12.31 pm, shares of Mphasis were trading at Rs 3,068.70 on the NSE.

The information services company's net profit grew 3 percent on quarter to Rs 404 in Q1 of FY25 while revenue was flattish at Rs 3,422 crore. On a constant currency basis, the topline grew 0.1 percent sequentially. Meanwhile, the company's EBIT margin in the quarter gone by stood at 11 percent.

Furthermore, the management shared an optimistic outlook for the company as it rolled out its FY25 margin guidance of 14.6-16 percent.

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On top of that, the company's deal pipeline also grew 17 percent sequentially. The total contact value (TCV) stood at $319 million, of which 84 percent were accounted by new-generation services. The company recorded $177 billion worth of TCV in the quarter prior.

Manish Dugar, the chief Financial Officer of Mphasis, stated in an interaction with CNBC-TV18 that he was confident of being able to maintain margins within its guided range.

"We spent the last 18 months as an industry with our customers, figuring out the potential of Gen-AI, and now we are starting to see a scale-up of Gen-AI-led deals," Dugar said. "So a third of our pipeline is actually AI-led, and that gives us great hope that we will not only be able to create a sustainable, longer-term business model around this new pivot, but more importantly, there are ways to create value for customers that give us a lot more stickiness," he added.

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