Mphasis Q2 Results: Net Profit Rises 4.6%, Revenue Up 3%

Mphasis Ltd. on Thursday reported a 4.6% sequential rise in net profit in the quarter ending September. The company's net profit stood at Rs 423 crore, compared to Rs 404 crore in the first quarter, according to an exchange filing.

Revenue increased 3.3% to Rs 3,536 crore, from Rs 3,422 crore in the second quarter of fiscal 2025.

Operating profit or EBIT advanced 6% to Rs 544 crore, compared to Rs 514 crore the previous quarter. EBIT margin improved from 15% to 15.4%, within the target band of 14.6% to 16%.

The total contract value for the quarter was at $207 million, which includes three large deals secured during the period, the company said in an investor presentation.

Mphasis said the TCV wins are broad-based across verticals, client pyramid, and strategic customers and the pace of conversion to revenue has picked up.

Income from banking and financial services segment for Mphasis rose 3.6% sequentially to Rs 1,689 crore.

Revenue from technology, media and telecom vertical grew 6% to Rs 582 crore from Rs 549 crore.

Insurance segment income advanced 2.3% to Rs 387 crore from Rs 396 crore in the second quarter.

The growth in logistics and transportation vertical was flat at Rs 464 crore.

Mphasis' board approved further investment of up to 30 million euros in wholly-owned subsidiary Mphasis Europe BV. The investment will be made by end of March 2025.

This investment will enable Mphasis Europe BV in repayment of borrowings, the company said.

Mphasis is a Bengaluru-based multinational information technology service and consulting company. It provides infrastructure technology and applications outsourcing services, as well as architecture guidance, application development and integration, and application management services.

Last month, the company appointed Ajay Arya, an industry veteran, as the head of its merger and acquisitions department. Arya will be based in New York and lead the entire process, including strategy, evaluation, deal sourcing, negotiation, diligence management and post-merger integration.

Shares of Mphasis closed 0.3% down at Rs 2,920 apiece on Wednesday, compared to a 0.3% decline in the Nifty 50. The stock has risen 27% in the last 12 months and 6% on a year-to-date basis.

Fifteen out of 35 analysts tracking the company have a 'buy' rating on the stock, 10 recommend a 'hold' and 10 suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target of Rs 2,989 implies a potential upside of 2.7%.