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Mphasis Q4 net profit down 10% YoY to 316.9 crore

For FY21, Mphasis' net profit was up 2.7% to  ₹1,216.8 crore. Excluding a one-time income tax benefit of  ₹42.4 crore in FY20, net profit grew 6.5%Premium
For FY21, Mphasis' net profit was up 2.7% to 1,216.8 crore. Excluding a one-time income tax benefit of 42.4 crore in FY20, net profit grew 6.5%

Its revenue from operations grew 7.5% to 2,524.2 crore in the March quarter from 2,346.1 crore in the year-ago period driven by broad-based growth aided by Europe and Hi Tech vertical in addition to banking and capital markets

Bengaluru: IT services firm Mphasis Ltd reported a 10.2% year-on-year (YoY) decline in net profit to 316.9 crore during the fourth quarter ended March. For FY21, Mphasis' net profit was up 2.7% to 1,216.8 crore. Excluding a one-time income tax benefit of 42.4 crore in FY20, net profit grew 6.5%.

Its revenue from operations grew 7.5% to 2,524.2 crore in the March quarter from 2,346.1 crore in the year-ago period driven by broad-based growth aided by Europe and Hi Tech vertical in addition to banking and capital markets. For FY21, revenue from operations was up 9.9% to 9,722.3 crore.

"The accelerated digital transformation journey for businesses globally has translated to continued growth for Mphasis in FY21. This has been a break-out year in terms of growth," said Nitin Rakesh, chief executive officer and executive director of Mphasis.

During the March quarter, Mphasis won direct new deals worth a total contract value (TCV) of $245 million, of which 69% came from new-generation services. “Our new-generation wins are witnessing increased deal sizes," Mphasis said. It also closed a landmark $250 million deal in Q1FY22.

For FY21, the company clocked $1,112 million TCV wins in direct business, of which 73% came from new-generation services.

“Apart from healthy deal wins, the company has witnessed increase in deal in size of wins (almost doubled on a YoY basis) while the tenure has also increased. We believe this bodes well for long term revenue growth," ICICI Securities said in a post-earnings note.

Last month, private equity major Blackstone said it will transfer its entire majority shareholding in Mphasis from its existing fund to two new funds after dropping plans to sell its stake to a third party. The move is expected to help Blackstone, which owns 56% of the IT services company, hold on to the stake for a longer period, and seek exit opportunities later.

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