With parent Hewlett-Packard (HP) going through tough times, the ripple effects were being felt at MphasiS, its majority owned information technology services subsidiary in India.
In the quarter ended April 30, MphasiS posted a 13 per cent drop in net profit to Rs 189.43 crore, against the same period in the previous accounting period. Revenue went up by six per cent to Rs 1328.9 crore, compared with the year-ago period. On a sequential basis, net profit went up by 2.5 per cent, whereas revenue declined by three per cent.
Its headcount reduced to 37,179 (including billable contract employees and BPO employees) from 38,798 at the end of the previous quarter. In the year-ago period, it stood at 41,739.
It improved the utilisation rate for its application services and infrastructure technology outsourcing services business by 300 basis points each to 80 and 84 per cent, respectively, when compared with the previous quarter, resulting in improvement of its operating margin by 80 basis points to 14.3 per cent when compared with the previous quarter.