Digital, AI-related services prop up Mphasis Q1 revenue up 13%

Digital, AI-related services prop up Mphasis Q1 revenue up 13%
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26 Jul, 2019

Bengaluru-based mid-tier IT services firm Mphasis reported a 13.31% growth in revenues for the first quarter of financial year 2019-2020 on the back of the delivery of new generation services like digital, mobility, cloud, cognitive and artificial intelligence, according to its filing with the Bombay Stock Exchange (BSE).

The company reported revenues at Rs 2,062.55 crore for the quarter ended June 30, 2019, compared to Rs 1,820.22 crore for the corresponding period last year. 

On a sequential basis, the company’s revenues increased only 1.85% with it reporting a revenue of Rs 2,024.95 crore for the quarter ended March this year. 

“Our growth has been broad-based across all segments as we continue to play a strategic role in helping our clients with their business transformation,” Nitin Rakesh, chief executive officer and executive director at Mphasis, said. 

He added that the company had won new deals worth $151 million of which 80% were in the area of new generation services.  

The company also reported a 2.46% rise in net profit at Rs 264.69 crore compared to Rs 258.31 crore for the corresponding period last year.

On a quarter-on-quarter basis, the company’s profits showed a marginal decline of 0.54% with it reporting a net profit of Rs 266.14 crore for the quarter ended March 2019. 

In terms of segments, banking and capital markets, followed by emerging industries and IT, communication and entertainment contributed to most of the revenues.

While the banking and capital markets garnered revenues of Rs 920.62 crore, emerging industries contributed Rs 558.23 crore. The IT, communication and entertainment sectors delivered Rs 341.29 crore. 

In May, the company had partnered with US blockchain firm Bitfury to digitise financial services for global trade.

In the same month, the company had also roped in Tech Mahindra’s Ravi Vasantraj to head its global business process services (BPS), including the digital risk portfolio. 

In June, the company had partnered with business process management (BPM) company Camunda to gain a stronger digital foothold for existing clients while growing its presence in global markets in the financial services sector.

In July, the company had inked a deal with application analytics platform AppDynamics to improve application performance and reliability issues.