Mphasis Q1 PAT slides 22% to Rs 275 cr

The IT firm's consolidated net profit dropped 22.11% to Rs 275.11 crore on 2.46% decrease in revenue from operations to Rs 2,288.21 crore in Q1 June 2020 over Q4 March 2020.

Consolidated profit before tax (PBT) declined 9.26% to Rs 376.56 crore in Q1 June 2020 as against Rs 414.99 crore in Q4 March 2020. Total tax expense for the quarter surged 64.26% at Rs 101.45 crore as against Rs 61.76 crore in Q4 March 2019. The result was announced post market hours yesterday, 23 July 2020.

During Q1 FY21, Mphasis' gross revenue grew 11.8% Y-o-Y (year-on-year) and declined 1.9% Q-o-Q (quarter-on-quarter) on reported basis. In constant currency, growth was 3.8% Y-o-Y and declined 4.6% Q-o-Q. The company reported $259 million total contract value (TCV) wins in direct international business, including a large deal worth $105 million of which 79% in new-generation services, the highest ever deal wins in a quarter.

In addition to the Q1 TCV declared wins, another new $216 million deal was signed in July 2020. Direct international vertical during the quarter jumped 19.8% Y-o-Y and 2.1% Q-o-Q on a reported basis. In constant currency, revenue grew 10.8% Y-o-Y and declined 0.5% Q-o-Q. Direct core revenue soared 15.5% Y-o-Y and 0.5% Q-o-Q on a reported basis. In constant currency, growth was 6.9% Y-o-Y and declined 2.1% Q-o-Q.

Speaking on the same, Nitin Rakesh, the chief executive officer (CEO) and executive director of Mphasis, stated: "Our clients have been overwhelmingly supportive over the past few months, and we have seen unprecedented levels of collaboration leading to opportunities to further step up the value pyramid. We have had our best quarter ever of deal wins; which, in the current environment, is a testament to the strength of our service offerings and the hard work of the Mphasis teams. This sets us up nicely to keep Mphasis on the growth path this year and gain further market share."

Shares of Mphasis jumped 5.35% to Rs 1,032.20. The IT firm'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.

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