Mphasis Q4 net profit rises 12%, revenue grows 16%

Mphasis Q4 net profit rises 12%, revenue grows 16%
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28 May, 2019

Mid-tier software services firm Mphasis Ltd has reported a 12% rise in consolidated net profit for the January-March quarter to Rs 266 crore from Rs 238 crore a year earlier.

Quarterly revenue grew 16% to Rs 2,025 crore from Rs 1,745 crore, the Bengaluru-based IT firm said.

On a sequential basis, net profit fell 4% while revenue grew 2.7%. Its net profit was Rs 278 crore for the December 2018 quarter while its revenue stood at Rs 1,971 crore.

For the year ended March, the Blackstone-owned company reported a 28% growth in consolidated net profit to Rs 1,073 crore from Rs 838 crore. Revenue grew 18% to Rs 7,731 crore from Rs 6,546 crore.

"We are encouraged by the consistent and healthy growth over the quarters; especially in new generation services, which contributes 46% of our direct core portfolio,” said Nitin Rakesh, CEO at Mphasis. "We continue to invest in growing our service offerings and strengthening our go-to-market, both by building core offerings as well as partnering with the best product companies," he added.

The company said it won deals worth $616 million for 2018-19. Its board proposed a dividend of Rs 27 per share.

Global private equity firm Blackstone had bought a 60.48% stake in Mphasis in 2016 from Hewlett Packard Enterprise (HPE) for more than $800 million. The IT company still owes a large part of its revenue to the deals it had signed during the period it was under HP.

HP had acquired Mphasis' US-based parent in 2008. Since then, HP had split its hardware and software businesses while its software business was merged with CSC to create a new firm DXC.