Mphasis gains after Q2 PAT rises 5% QoQ to Rs 423 cr

Mphasis advanced 2.11% to Rs 2,972.20 after the company's consolidated net profit grew 4.65% to Rs 423.33 crore in Q2 FY25 as compared with Rs 404.50 crore in Q1 FY25.

Revenue from operations rose 3.32% to Rs 3,536.14 crore in Q2 FY25 as against Rs 3,422.46 crore posted in Q1 FY25.

As compared with Q2 FY24, the company's net profit increased 8% while revenue grew by 7.92% in Q2 FY25.

Profit before tax was at Rs 562.57 crore in quarter ended 30 September 2024 (up 4.70% QoQ and up 7.84% YoY).

The companys gross revenue increased 3.1% QoQ and 7.0% YoY in Q2 FY25 on a reported basis and grew 2.4% QoQ and 5.4% YoY in constant currency.

Direct revenue grew 3.2% QoQ and 7.9% YoY on a reported basis and grew 2.4% QoQ and 6.2% YoY in constant currency.

In Q2 FY25, the companys new Total Contract Value (TCV) stood at $207 million in its direct segment, with 88% of this amount coming from new-generation services.

Nitin Rakesh, chief executive officer, and managing director, Mphasis, said, Despite many ongoing challenges, the macro environment continues to trend in the right direction. We are witnessing increased AI adoption across clients to address enterprise challenges with higher efficiency and accuracy, beyond cost advantage. Savings led transformation TM thesis is core to all our deal archetypes and solutions, thus significantly enhancing service delivery and savings for clients.

Meanwhile, the company announced that its board of directors approved further investments of up to 30 million in the equity share capital of Mphasis Europe BV, a wholly owned subsidiary.

The primary objective of this investment will enable Mphasis Europe BV inter alia in repayment of borrowings and the investment will be made by end of March 2025.

Mphasis is an information technology (IT) solutions provider specializing in cloud and cognitive services.

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