Mphasis declines after muted Q3 outcome

On a consolidated basis, Mphasis' net profit rose 7.42% to Rs 293.60 crore in Q3 December 2019 (Q3 FY20) as against Rs 273.31 crore reported in Q2 September 2019 (Q2 FY20).

On a consolidated basis, net sales rose 5.49% quarter-on-quarter (Q-o-Q) to Rs 2,276.72 crore in Q3 FY20. The result was announced after market hours yesterday, 6 February 2020.

Consolidated profit before tax gained 7.26% to Rs 386.51 crore Q-o-Q. Current tax expenses rose 17.59% to Rs 101.33 crore during the period under review.

During the quarter, the IT firm won deals worth $189 million (in total contract value or TCV) in direct international. Gross Revenue grew 5.7% Q-o-Q and 13.3% Y-o-Y on a reported basis and on constant currency basis, growth was at 4% Q-o-Q and 12.6% Y-o-Y. The direct core revenue grew 6.3% Q-o-Q and 15.6% Y-o-Y on a reported basis and on constant currency basis, growth stood at 4.5% Q-o-Q and 14.7% Y-o-Y.

Speaking on the Q3 performance, Nitin Rakesh, the chief executive officer and executive director of Mphasis, has said that, "We are pleased with the results and continue to be enthusiastic about the health of our pipeline. We are focused on consistent performance while continuing to keep our clients' transformation needs at the center of our strategy and execution."

Mphasis is an information technology (IT) solution provider in cloud and cognitive services. The company's segments include banking and capital market, insurance, information technology, communication and entertainment and emerging industries. The geographical segments include United States of America, India, Asia Pacific and Europe, Middle East and Africa.

Shares of Mphasis fell 1.25% to Rs 931.15 on BSE. The stock hovered in the range of Rs 918.85 to Rs 955 so far.

Powered by Capital Market - Live News