- 17 Oct 2024
- ICICI Securities
MPHASIS: STEADY QUARTER WITH A BROAD-BASED GROWTH ACROSS ALL MAJOR GEOGRAPHIES AND VERTICALS
News: Mphasis in Q2FY25 reported revenue of US$430 mn, up 3.1% QoQ/ 7.8 YoY (up 2.4% QoQ/5.4% YoY in CC terms) while in rupee terms revenue grew by 3.1% QoQ/7% YoY to ₹3,529 crore. Direct revenue (95.8% of mix) grew 3.2% QoQ (2.4% QoQ/6.2% YoY in CC terms). Geography wise India (6% of mix), EMEA (11% of mix) and US (81% of mix) grew by 10.7%, 2.3% & 2.9% QoQ respectively while ROW (3% of mix) declined by 1% QoQ. Vertical wise Technology (16.5% of mix%), BFS (47.9% of mix), Others (11.3% of mix) and Insurance (11.2% of mix) grew by 6%, 3.6%, 2.9% and 2.3% respectively whereas Logistics (13.1% of mix) declined by 1% QoQ. The company's EBIT margin expanded by ~40 bps QoQ to 15.4% while absolute EBIT came at ₹544.4 crore. The company reported PAT of ₹ 423.3 crore (up 4.6% QoQ) with PAT margin of 12% (up ~20bps QoQ). The company during the quarter won TCV of US$207 mn, down 35% QoQ/19% YoY.
Views: The company reported broad based revenue growth across all verticals and geographies, barring logistics vertical and rest of the world in geographies. The company's savings led transformation theme continues to be its core for all their deals enhances their service delivery and savings for clients. The company reported a TCV of US$ 207 mn, of which 88% is from the new gen services. Management commentary on demand and growth is still awaited.
Impact: Neutral