Mphasis posts Rs 161.96 cr profit for Oct-Dec quarter

HP-owned IT services firm Mphasis today reported a consolidated net profit of Rs 161.96 crore for the third quarter ended December 31, 2014.
The firm had posted a net profit of Rs 180.60 crore for the three months ended January 31, 2014, it said in a BSE filing.
The company reported consolidated net sales of Rs 1,410.75 crore in the October-December quarter against Rs 1,563.97 crore in the three months ended January 31, 2014.
Mphasis has changed its financial year from October 31 to March 31, effective November 1, 2013, and therefore the numbers are not comparable.
However, on a quarter-on-quarter basis, its net profit rose marginally from Rs 160.20 crore in July-September quarter of 2014-15 fiscal, while revenues fell by 3.7 per cent from Rs 1464.87 crore in the second quarter.

Commenting on the performance, Mphasis CEO Ganesh Ayyar said, "Our deal win momentum continues to be robust in the Direct Organic space. Digital Risk too is seeing good traction. These two vectors combined are early signs of shift for Mphasis."

On quarterly decline in revenue, the firm said consolidated net revenues declined 3.7 per cent impacted by revenue decline in HP channel, Digital Risk and annual client shutdown.
HP channel revenue witnessed decline of 6.6 per cent quarter-on-quarter to Rs 487.2 crore on account of annual shutdown at HP and client ramp downs. HP Channel constitutes 35 per cent of total revenues. Slump in US mortgage industry impacted Digital Risk revenues, it added.

Cash and cash equivalents increased by Rs 247.7 crore during the third quarter to Rs 2,700.8 crore (USD 428 million). Excluding working capital loan availed during the quarter the net increase in cash and cash equivalents is Rs 123.7 crore.