Mphasis Ltd. announced its Q2 results on Thursday, October 17, showing higher-than-expected revenue growth. The company’s constant currency revenue increased by 2.4%, surpassing analysts’ estimates of 1.8% to 2%.
In rupee terms, Mphasis reported a 3.3% rise in revenue from the previous quarter, totaling ₹3,536.1 crore. EBIT also improved to ₹544.2 crore, up from ₹513.5 crore in the June quarter.
Net profit for the quarter grew by 4.6%, reaching ₹423.3 crore. Margin expansion was in line with expectations, with margins increasing to 15.4%, up 40 basis points from the previous quarter.
Growth was driven by the Technology, Media, and Telecommunications vertical, which posted a 5.6% increase, and the Banking and Financial Services (BFS) segment, which grew by 3.2%.
As of 9:17 am, Mphasis shares were trading 3.73% higher at ₹3,020.00 on the NSE.
Also – Morgan Stanley has maintained its equal-weight (EW) rating on Mphasis, with a target price of Rs 3,200. The company’s Q2 performance exceeded expectations in terms of revenue and margins, but deal wins were softer than usual.
