Mid-tier information technology (IT) services firm Mphasis reported a robust 33% increase in net profit for the March quarter of the financial year 2020 (FY20) while its revenue saw a growth of 16% year-over-year (y-o-y).
The Bengaluru-based firm reported Rs 353 crore in net profit during the last quarter of the last financial year, representing a growth of 33% y-o-y. The company's profit also saw a growth of 20% over the preceding quarter when it stood at Rs 294 crore.
The private equity firm Blackstone backed firm saw Rs 2,346 crore in revenue during Q4, a growth of 16% over the same period of the previous financial year when the revenue was at Rs 2,025 crore. Revenue in the December quarter of FY2020 stood at Rs 2,277 crore, which is a 3% quarter on quarter growth.
Mphasis has secured $201 million in deal wins during the quarter, of which 79% is in new-generation services, the company said. New generation services are those technologies related to cloud and digital transformation initiatives.
"During FY 20, we recorded the highest ever deal wins of $715 million, as well as strong earnings growth. We are focused on strengthening our position through this period of uncertainty by staying close to our clients and enabling them to accelerate their digital transformation journey during these challenging times,” Nitin Rakesh, CEO and executive director, Mphasis, said in a statement.
Full-year revenue for FY20 for Mphasis was at Rs 8,844 crore, as compared with Rs 7,731 crore it reported in FY 19, a growth of 14.4%. The net profit for the last financial year stood at Rs 1,185 crore, as compared with Rs 1073 crore during full-year FY 19, a growth of 10.4%.
The Covid-19 pandemic, which forced most major economies to go under lockdown, hit during the last two-three weeks of the March quarter and hence had only a minimal impact on the IT companies’ topline as well as profits during the last quarter or the full financial year. However, the IT analysts are expecting the current financial year to be a washout.
On Wednesday, technology research firm Gartner revised its global IT spend for 2020 saying that companies will cut expenditure by 8% in 2020, with the overall IT budget expected to fall to $3.4 trillion, due to the Covid-19 crisis. In January, the firm had projected that IT spending would grow to $3.9 trillion globally in 2020.
Last month, another Bengaluru-based mid-tier IT services firm Mindtree has reported 6.6% revenue growth year-on-year for the last quarter of the financial year ending March 2020.
Early this month, Mphasis and San Francisco-based Sauce Labs partnered to deliver continuous testing technology and best practices that enterprises need to build scalable, reliable, high-performance web, and mobile applications.