Mphasis Net Profit slides by 12 per cent to Rs 156 crore in Q1

Mphasis is an information technology services company. It is unit of HP (Hewlett Packard). This company's business segment includes business process outsourcing, infrastructure technology, and application services. The application services offered by the company includes application development as well as applications maintenance and support services.

Yesterday Mphasis announced its financial results for the first quarter ending 30th June 2015. Consolidated net revenues grew by 4.7 per cent to Rs 1496.41 crore as against Rs 1429.03 crore sequentially on a reported basis and net of rupee depreciation grew by 2.6 per cent in Q1 FY16. Mphasis Direct International Business leads growth with 10.7 per cent QoQ.

The total expenses rose by 4.46 per cent including increases in employee cost and other expenses. The depreciation reduced by 6.75 per cent because during the quarter as company reduced its fixed assets from 1759 to 1719. The EBITDA increased by 4.95 per cent, wherein the EBITDA margin expanded by 3 basis points to 14.14 per cent on sequential basis. Operating margin increased by 20 basis points to 12.7 per cent during Q1 FY16.

The Net Profit of the company reduced by 12 per cent to Rs 156 crore in Q1FY16 as compared to Rs 178 crore in Q4FY15. Cash and cash equivalents increased by Rs 152.8 crore during the quarter to 2916.8 crore.

“These results reinforce our confidence in growing Direct International faster than the market. This quarter saw strong growth and continued momentum in new wins. Good start to FY16,” said Ganesh Ayyar, Chief Executive Officer, Mphasis.

During the Quarter the company continued to build strong pipeline with robust deal wins of USD 7.6 crore TCV in Q1 FY16 providing good revenue visibility in Direct International business. Mphasis signed two definitive agreements for sale of Indian domestic BPO business. The Company launched HyperGraf - the company’s first product offering developed by its technology incubator Nextlabs.

Today Mphasis is trading around 2 per cent lower at Rs 410.