Mphasis Q2 net profit grows 9.5% to Rs 299 cr

Mphasis Q2 net profit grows 9.5% to Rs 299 cr
Photo Credit: Reuters
23 Oct, 2020

Information technology (IT) services firm Mphasis on Friday reported a 9.5% year-on-year (YoY) increase in net profit to Rs 299.2 crore for the September quarter of the financial year 2020-21 (FY21).

Its revenue from operations for the quarter shot up to Rs 2,435.4 crore from Rs 2,158.1 crore for the same period last year, witnessing a 12.9% increase. In constant currency terms, the YoY growth stands at 6.7%.

Meanwhile, its direct revenue rose 9.7% compared to the previous quarter (Q1 2020), the company, which specialises in cloud and cognitive solutions, said, adding that YoY growth was at 25.2% on a reported basis.

Following the strong results, the shares of the Bengaluru headquartered firm gained over 4% on Friday morning. At the time of publishing, it was trading at Rs 1,383.25 on the BSE, up 2.26% from the previous close. 

For the quarter ended September 2020, Mphasis won $360 million worth of deals (total contract value or TCV) in direct international business. This is the highest number for direct deals ever registered by the company in a quarter -- new generation services made up 73% of the total.

“We are pleased with achieving the highest-ever TCV wins for the quarter, as the nature of deals is transformation lead, requiring multiple capabilities and competencies to come together. The investments we made in our tribes and squads model are driving growth and differentiation,” Nitin Rakesh, CEO and executive director, Mphasis, said in a statement.

On Thursday, the company signed a deal with Contour to accelerate the adoption of its global standard for trade by banks and enterprises. In August, it partnered with UK firm iMeta Technologies to develop an artificial intelligence-based KYC solution for financial institutions active in the UK and Europe regions.