 "Mphasis Q3 results: Net profit jumps 15% to Rs 428 crore, revenue up 7%")
Indian software services company Mphasis posted a bigger-than-expected rise in third-quarter profit on Thursday, aided by strong deal wins in its banking segment.
The company's consolidated net profit grew nearly 15 per cent to Rs 428 crore ($49.54 million) for the quarter ended Dec. 31 compared with analysts' expectations of Rs 426 crore, according to data compiled by LSEG.
Mphasis' quarterly revenue of Rs 3,561 crore was about 7 per cent higher than last year, but missed analysts' estimates of Rs 3,570 crore.
US client spending in the banking and financial services (BFS) segment has been recovering slowly since the Federal Reserve began its rate easing cycle in September.
The segment - which accounts for nearly half of Mphasis' overall revenue - saw an almost 9 per cent revenue growth during the quarter driven by higher customer spending and gradual recovery in mortgage business, the company said.
The company's total contract value (TCV) grew 46 per cent to $351 million during the quarter.
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India's $254 billion IT services sector has been cautiously optimistic post third quarter results on early signs of a revival in domestic discretionary spending, after a period of sluggish growth due to inflationary pressures and geopolitical uncertainty.
Indian IT firms, which rely heavily on the US for their revenue, have also been optimistic about President Donald Trump's second term, due in part to his proposals of lowering taxes and removing regulations.
Mphasis' technology, media and telecom (TMT) segment revenue grew near 13 per cent during the quarter, driven by continued order wins.
Shares of the company closed nearly 4 per cent higher ahead of results.
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