Mphasis Shares Surge Over Two-Year High After Q1 Profit Rises
The company reported a net profit of Rs 405 crore in the quarter ended June 2024, compared with Rs 393 crore in the same quarter a year ago
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Shares of Mphasis Ltd. hit their highest level in over two years on Friday after its profit rose 2.9% in the first quarter. The company reported a net profit of Rs 405 crore in the quarter ended June 2024, compared with Rs 393 crore in the same quarter a year ago, according to an exchange filing.
In the last couple of quarters, Mphasis had muted total contract value, or TCV, numbers because clients weren't ready to commit to large programmes, given the uncertainty, Chief Executive Officer Nitin Rakesh told NDTV Profit in an interview.
This uncertainty was more about where to spend when technology is affecting all business sectors. The increase in TCV conversion can be attributed to Mphasis' ability to integrate transformation theory with efficiency.
The software service provider has launched Mphasis NeoCrux to increase software developers' productivity by providing generative artificial intelligence solutions, the company said in an exchange filing on Friday.
Mphasis has also launched a Gen-AI-based enterprise modernisation platform in the market, NeoZeta, which provides a re-learning process to organisations and can modernise mission-critical systems, the exchange filing said.
Mphasis Q1 Results: Key Highlights (Consolidated, YoY)
Revenue up 0.3% at Rs 3,422 crore.
EBIT up 1.1% at Rs 514 crore.
EBIT margin at 15% versus 14.9%
Net profit up 2.9% at Rs 405 crore.
Shares of Mphasis rose as much as 5.94% to Rs 3,013.45 apiece, the highest level since April 13, 2022. It was trading 5.3% higher at Rs 2,997.55 as of 10:34 a.m., compared to 0.81% in the NSE Nifty 50 index.
The stock gained 33% in last 12 months and 9.43% on year to date basis. Total traded volume so far in the day stood at 1.08 times its 30-day average. The relative strength index was at 76.40, which implied the stock is overbought.
Out of 34 analysts tracking the company, 12 maintain a 'buy' rating, 12 recommend a 'hold,' and 10 suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 16.5%
