Mphasis beats forecast with 15% rise in profit

Mid-sized information technology (IT) service provider Mphasis today posted better-than-expected profit and revenue for the July-September quarter with strong performances of its direct international business.

The firm posted a net profit of Rs 184.72 crore in the quarter ending September 30, up 15.3% from same period last year. On a sequential basis, net profit was up by 18.2%. According to estimates of analysts compiled by Bloomberg, net profit was pegged at Rs 180 crore.

The company attributed the rise in profit to increasing revenue from its direct international business. During the period, revenue from direct international business grew by 7.9% from previous quarter. Consolidated revenue also went up by 4% quarter-on-quarter to Rs 1557 crore, ahead of earnings estimates of Rs 1525 crore.

"We are delivering to our plans of growing direct international business faster than the market. These results reflect excellent overall performance" said Ganesh Ayyar, chief executive officer of Mphasis.

The increase in revenue came banking and insurance sectors, despite a steady fall in It, communication and entertainment segment, which witnessed a decline in revenue contribution at Rs 197 crore in September quarter, lower than Rs 246 crore in the year ago period.

During the last quarter, the company made major deals in direct international business worth $90 million (Rs 586 crore) , it said in a statement.

Following the results announcement, shares of Mphasis jumped sharply on better than expected results.

The shares surged more than 13% to touch an intra-day high of Rs. 475 on the Bombay Stock Exchange. On the National Stock Exchange the rise was 13.6% at Rs 474 per share.

The scrip closed at Rs 458.25 per share, a rise of 16% in last six months.