MphasiS goes all out to increase revenues from HP

Company investing in new areas such as data, analytics and mobility to stay relevant to the US giant

Mid-sized information technology services company MphasiS, which has been trying to grow its direct sales channel for the past few quarters, is now going all out to woo its largest client, Hewlett-Packard (HP).

HP, which is also the promoter of the Bangalore-based company, contributes close to 10 per cent to the total revenues of MphasiS as a client. However, in the just-ended financial quarter, revenues from HP declined 0.7 per cent (net of rupee depreciation, it fell four per cent) to Rs 644 crore.

Ganesh Ayyar, MphasiS' chief executive officer, said the company was treating its promoter just like a large client without "thinking about this parent-and-child relationship". He also said the company had started focussing on areas like data, analytics and mobility to stay relevant to HP.

"We are continuously thinking about how do we bring some new value to them (HP) to do more business with them. We want to work with them in areas that they want to grow in," Ayyar told Business Standard.

"We have attempted two or three different kinds of things and it hasn't worked, but we keep trying. HP is a very very important customer to us, and I will go all the distance to woo them," he added.

In May-July, the HP channel (both HP as a client as well as as partner who gives clients to MphasiS) made for 41 per cent of the MphasiS business, lower from 54 per cent a year ago. To "crack the code" of getting more business from HP, MphasiS has introspected about the reasons for the fall in the business, and has also increased its solution offerings and specialisations in areas that Ayyar believes will add value for the client. He, however, said the company would not look at giving a pricing discount to win orders from HP as MphasiS will not give up on "profitable growth".

"One of the things that people generally talk about is can you lower rates, and that's the easiest thing to do and that's something which we haven't done because we believe in profitable growth. We are approaching them with more solution offerings rather than thinking of price reduction," Ayyar said.

In its financial third quarter ended July 31, MphasiS reported a 7.7 per cent decline in net profit at Rs 193 crore when compared with the corresponding quarter last year. The company's consolidated net revenue went up 13.6 per cent year-on-year to Rs 1,540 crore.