Mid-tier IT solutions company Mphasis on July 25 reported a consolidated net profit of Rs 404 crore for the June quarter, up 2.1 percent from the year-ago period. On a sequential basis, net profit was up 2.9 percent.
Mphasis' revenue from operations rose 4.6 percent YoY to Rs 3,422 crore. On a quarter-on-quarter basis, the topline grew 0.2 percent.
On a constant currency basis, revenue grew 0.1 percent QoQ and 3.1 percent YoY, the company said in a press release.
"We are seeing a steady improvement in client demand, and with the strength of our deal pipeline, we remain cautiously optimistic that this trend will continue to improve in our core markets,” Chief Executive Officer and Managing Director Nitin Rakesh was quoted as saying in the release.
New total contact (TCV) win came in at $319 million, of which 84 percent were in the new-generation services. The company recorded $177 million worth of TCV in the March quarter.
"As AI-enabled platforms are adopted at scale and infused across all deal archetypes and solutions; we continue to witness a strong growth momentum in Artificial Intelligence (AI) powered deals by leveraging our ‘Savings led Transformation’ theme," Rakesh added.
Mphasis results follow the trend of muted performance by large-cap IT services companies such as Tata Consultancy Services, Infosys, Wipro, and LTIMindtree. These companies saw a muted quarter due to demand slowdown, macroeconomic headwinds, and weak discretionary spending.
Operating Margin grew 10 basis points (bps) on a sequential basis and declined 40 bps YoY to 15 percent in Q1.
Banking and Financial Services grew 1.1 percent YoY to Rs 1,630 crore on the verticals front, while the Technology, Media, and Telecom segment grew over 11 percent to Rs 5,490 crore.
On headcount, the company’s tally went down by 1,019 employees to 31,645 in April-June. Mphasis’ utilisation rate increased by a percentage point to 76 percent in Q1.
The company's earnings per share (EPS) grew 1.8 percent YoY to Rs 21.4.
Earlier on July 25 at the company's annual general meeting, Chairman Davinder Singh Brar said the IT sector has faced significant challenges arising from global uncertainty, high interest rates, record inflation, and a fragile geo-political environment. However, he added that the sector is still resilient in innovation and transformation.
"Business models are evolving in response to technological advancements
and companies across sectors are integrating next-generation technology and innovations," Brar said.
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