IT firm Mphasis expects recovery from Q2 amid coronavirus pandemic

This growth is driven by vendor consolidation and investments in areas of digital such as cloud, data and analytics.

Swathi Moorthy

July 25, 2020 / 07:53 IST

Mid-tier IT firm Mphasis expects to see positive sequential growth from the second quarter - driven by vendor consolidation and investments in digital, said CEO Nitin Rakesh.

Rakesh said, “We expect to end the year with a positive growth territory.”

In addition to digital, this growth will also be aided by the company’s portfolio that are diversified and are in areas that are less stressed, he added.

The company’s net revenue declined 2.5 percent sequentially for the quarter ending June 2020 to Rs 2288 crore. It grew 10.9 percent on a year-on-year (YoY) basis. The net profit decreased 22.1 percent sequentially to Rs 275 crore for the June quarter.

A third of the company’s revenues from banking and capital markets. It accounted for about Rs 1124 crore, a growth of 4.9 percent sequentially and grew 22.1 percent year-on-year. However its other sectors such as insurance, information and technology and communication and entertainment saw a decline of close to 5 percent.

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