Mphasis revenue grows 11% for June quarter, shares rise 18%

Mid-size information technology (IT) services firm Mphasis has reported a 4% growth in net profits to Rs 275 crore for the June quarter of the financial year 2020-21 (FY21). 

The period also witnessed the most deal wins in the Bengaluru based company’s history, with a total contract value of $260 million, including a large deal worth $105 million, the firm said. It also secured a $216 million deal in July, the firm added.

Mphasis reported an 11% growth in revenue to Rs 2,288 crore for the April-June quarter in FY21, which the company counts as the first quarter of the financial year, compared to Rs 2,063 crore for the same period a year ago.

The better-than-expected results and the strong deal pipeline sent the company shares up 18% during the day at the Bombay Stock Exchange. 

The company reported a 1.9% quarter-on-quarter dip in gross revenue. However, in constant currency terms, it witnessed a 3.8% year-on-year growth, with a 4.6% drop quarter-on-quarter.

“We have seen unprecedented levels of collaboration leading to opportunities to further step up the value pyramid. We have had our best quarter ever of deal wins, which, in the current environment, is a testament to the strength of our service offerings. This will help us to be on the growth path for this year and gain further market share,” Nitin Rakesh, CEO and executive director of Mphasis, said.

Earlier this month, Mphasis agreed to pay $171,300 in lost wages to settle allegations of discrimination against white applicants in its San Jose, California office. The company allegedly favoured Asian applicants, which violated discrimination rules in the hiring practice. Mphasis denied the allegations.

For the March quarter of the financial year 2019-20, Mphasis reported a robust 33% increase in net profit at Rs 353 crore, while its revenue saw a 16% year-on-year growth.