Mphasis slumps after muted Q2 performance

Mphasis tumbled 4.69% to Rs 2046.35 after the company reported 4.1% rise in consolidated net profit to Rs 418.46 crore on a 3.2% increase in net sales to Rs 3,519.82 crore in Q2 FY23 over Q1 FY23.

As compared with Q2 FY22, the company's revenue and net profit are higher by 22.6% and 22.7%, respectively.

In dollar terms, the company recorded revenues of $440 million, up 0.9% QoQ and up 14.3% YoY. In constant currency terms, growth was 1.8% QoQ and 16.8% YoY.

Profit before tax in Q2 FY23 stood at Rs 555.05 crore, up 4.2% QoQ and 20.8% YoY.

The company recorded new TCV wins of $302 million in Q2 FY23 in Direct, of which 81% is in new generation services. Further, two large deal wins in Q2 FY23 totalled to $110 million. With this, TCV wins in H1 FY23 stood $604 million.

Nitin Rakesh, chief executive officer and managing director, Mphasis, said: "Our consistent performance is proof of our timely and continued investment in the right growth areas, while executing on our fundamental strengths. We have institutionalized a strong deal archetype playbook by account, for protecting the core, repeatable growth in capability-led transformation and accelerating from 'Run' to 'Change', at the speed of our clients."

Mphasis is a mid-sized IT company primarily engaged in providing IT/ ITeS/ BPO services to clients in the banking and capital markets, emerging industries, IT, communication and entertainment, and insurance sectors. The company derives its revenues primarily from software services and projects, licensing arrangements and application services, as well as infrastructure outsourcing services. The company is present across North America, Europe, South Asia and Asia Pacific. As on 30 June 2022, BCP Topco IX Pte. Ltd., a Blackstone PE Fund, held about 55.72% stake in Mphasis.

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