- 26 Jul 2024
- ICICI Securities
Mphasis: Decent performance with a broad-based growth across all major geos and verticals
MPHASIS - 3105 Change: 1.50 (0.05 %)News: Mphasis in Q1FY25 reported revenue of US$ 416.5 mn, up 2% QoQ/4.6& YoY (down 0.1% QoQ in CC terms) while in rupee terms revenue grew by 0.2% QoQ/4.6% YoY to ₹3,421 crore. Direct revenue (95.8% of mix) grew 0.6% QoQ (0.3% QoQ/0.1% YoY in CC terms). Geography wise India (5.3% of mix), EMEA (11.1% of mix) and US (80.9% of mix) grew by 1.2%, 0.5% & 0.1% QoQ respectively while ROW (2.7% of mix) was flat QoQ. Vertical wise Insurance (11.3% of mix), BFS (47.7% of mix), Technology (16% of mix%) and Logistics (13.7% of mix) grew by 2.7%, 1.4%, 0.8% & 0.3% QoQ respectively while Others (11.3% of mix) declined by 7.8% QoQ. The company's EBIT margin expanded by ~10 bps QoQ to 15% while absolute EBIT came at ₹513.6 crore. The company reported PAT of ₹ 404.5 crore (up 2.9% QoQ) with PAT margin of 11.8% (up 30 bps QoQ). The company during the quarter won TCV of US$ 319 mn, up 80.2% QoQ / down 55% YoY.
Views: The company reported decent numbers for the quarter on the back of its savings led transformation theme. It witnessed broad based growth across geographies and almost all verticals, barring others. Out of TCV of US$ 319, 84% are in new-gen services. The management remains cautiously optimistic for the demand to steadily improve going forward. Management commentary on demand and growth is awaited.
Impact: Neutral