MphasiS Q1 net flat; revenues declines 8%

Bangalore-based IT Services company, MphasiS witnessed a marginal decline of 0.23% in its net profit to Rs 184.40 crore for its first quarter ended 31st January 2013 when compared with the corresponding quarter in the previous accounting period.

The consolidated revenues of the company for the November-January period stood at Rs 1,257 crore, a decline of 8% when compared with the same period last year. The company said the drop in revenues was primarily due to the annual holiday shutdown at various clients.

The company which follows November-October financial year said its direct business revenues grew 7% to Rs 621 crore on year-on-year basis. At the end of first quarter, 48% of MphasiS'  business came through its direct sales engine while the rest came from its parent, HP. Of the 22 clients added during the quarter, 14 came through MphasiS' direct sales channel.  

"Direct business is gaining traction and we are seeing pipeline building in the US and India. Digital Risk (the US-based analytics company MphasiS acquired last year) has joined our family, and that further enhances our hyperspecialization," said Ganesh Ayyar, Chief Executive Officer, MphasiS.

The company expanded operating margins by 60 basis points during the quarter to 15.5% as against 14.9% reported during the same period last year. Cash and cash equivalents increased by Rs 170 crore during the quarter to reach Rs 3,110 crore on 31st January 2013.

Meanwhile, MphasiS said Balu Doraisamy and Francesco Serafini have resigned as directors of the company with effect from February 14, 2013. The company has appointed James Mark Merritt as additional director and Narayanan Kumar as an Independent additional director effective February 15, 2013. In addition, Lakshmikanth K Ananth has been appointed as an additional director effective February 28, 2013.

On the BSE, the shares of the company closed at Rs 373.80, down 0.65% as against the previous day's close.