Mphasis focuses on deep tech, sees FY21 as growth year2 min read . Updated: 24 Jul 2020, 04:33 PM IST
- Mphasis expects 2020-21 to be a growth year as its gross revenue grew 11.8% y-o-y on to ₹2303.7 crore in Q1FY21
- The net profit grew 3.9% y-o-y but decreased 22.1% sequentially to ₹275.1 crore in the June quarter
Bengaluru-based mid-sized IT services company Mphasis Ltd is eyeing deep tech to differentiate itself and solve customer problems even before they arise.
“Customers demand agility and customer centricity. So, we have really gone deep into design architecture and engineering to lead our customers wherever needed and not wait for them to define the problem but engage with them early and help them define and solve the problem. That has become the magic formula for us," Nitin Rakesh, chief executive officer & executive director, Mphasis said in a telephonic interaction with Mint.
“The way enterprises consume technology is changing dramatically because the customer is driving a lot of disruptions and the response time needed is very different. Technology today is no longer just an enabler of a back-office function but it has become front and central to the end customer," Rakesh said.
Mphasis expects 2020-21 to be a "growth year". The IT company's gross revenue grew 11.8% y-o-y on to ₹2303.7 crore in Q1FY21. The revenues however declined 1.9% on quarterly basis for the first time in about 12 quarters due to challenges arising out of the covid-19 pandemic. “We have already called out Q1 to be the bottom and expect growth from Q2 onward," Rakesh said.
The net profit grew 3.9% y-o-y but decreased 22.1% sequentially to ₹275.1 crore in the June quarter.
The growth will be mainly driven by the banking and capital markets and logistics & transportation sectors, which grew 22.1% and 21.6% y-o-y respectively during the quarter-ended June.
The company won new deals worth total contract value (TCV) of $259 million in Q1 with 79% of the deals belonging to the ‘new-gen’ services that basically refer to its digital business comprising of cloud, automation, and related technologies.
The ‘new-gen’ services revenue grew 28.4% annually on a reported basis and contributed 53.8% to its direct core revenue for the first quarter.
In addition to the deals signed in Q1, the company signed an additional $216 million deal in July alone which indicates a healthy deal pipeline and strong demand for its technology services.
“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 and the hard work of Mphasis teams. This sets us up nicely to keep Mphasis on the growth path this year and gain further market share" said Rakesh.