Mphasis Ltd. announced its results for the September quarter on Thursday, October 17, reporting higher-than-expected revenue growth. The company’s constant currency revenue grew by 2.4%, surpassing analysts’ estimates, which ranged between 1.8% and 2%.
In rupee terms, Mphasis recorded a 3.3% increase in revenue from the previous quarter, bringing the total to ₹3,536.1 crore. The company’s Earnings Before Interest and Tax (EBIT) also rose, reaching ₹544.2 crore, compared to ₹513.5 crore in the June quarter.
Mphasis saw a margin expansion in line with expectations, with its margins increasing to 15.4%, up by 40 basis points from 15% in the previous quarter. Net profit grew by 4.6% on a sequential basis, totaling ₹423.3 crore.
Growth in the quarter was primarily driven by the Technology, Media, and Telecommunications vertical, which posted a 5.6% increase. The Banking and Financial Services (BFS) segment also contributed, with 3.2% growth compared to the June quarter.
The company reported new deal wins of $207 million, although this figure was 35% lower than the June quarter, largely due to a high base in the previous quarter.
While Mphasis’ top client saw 8.6% growth quarter-on-quarter, its top five clients experienced a slight decline of 0.9% during the same period.
Shares of Mphasis ended 0.3% lower on Wednesday, priced at ₹2,920. The stock has been down by 8% in the month leading up to the results and has underperformed its peers in 2024, gaining just 7% so far this year.
