On October 20, 2023: Mphasis Limited (BSE, NSE: MPHASIS) announced its Q2 2023-24 financial results, registering TCV or Total Contract Wins of a whopping USD 255 million in Q2 FY 2023-24 plus H1 wins see a rise to USD 961 million, a surge of 59% YoY.
Table of Content
Key Highlights
Here are the main highlights of the results emphasising QoQ and YoY information below:
- For Q2, the Gross Revenue grew on a QoQ basis by 0.7%, and declined 6.5% on a YoY reported basis. In terms of a Constant Currency basis, it remained flat on a QoQ level and declined by 10.1% YoY.
- For Q2, the Direct revenue saw a growth of 1.0% QoQ and a drop of 5.2% YoY on a reported basis. In terms of Constant Currency, the growth was 0.3% QoQ and dropped 8.9% YoY.
- The company experienced fresh TCV wins amounting to USD 255 million in Q2 FY 2023-24, of which 70% were in new-gen services.
- In Q2, the Net Profit went down by 1% QoQ, and 6.3% YoY, to ₹391.9 Crore.
- The EPS saw a decline of 1.1% QoQ and 6.6% YoY in Q2.
Additional Read: Q2 Results Dashboard
Comments by the Management
The MD and CEO of Mphasis, Nitin Rakesh, laid stress on the following while commenting on the Q2 results:
- The company was witnessing signs of bottoming out due to a stable mortgage environment along with visibility for company growth.
- Company growth prospects appear positive given expansion processes in the pipeline as well as the closures of certain contracts gaining momentum.
- The focus of the company is to accelerate the path in terms of AI processes with a full-fledged dedicated AI unit in Mphasis (with GTM and crucial AI collaborations to take advantage of solutions opportunities).
Looking Ahead with Deal Wins
Q2 FY 2023-24 witnessed some important gains in terms of Mphasis sealing deals. Here are some key details about these wins:
- One of the largest American banks is extending its mortgage servicing collaboration with Mphasis with a view to end-to-end first mortgage.
- An American technology manufacturer is involved in talks with Mphasis to offer managed capacity services for several initiatives comprising software development and mobile app development with the enabling of AI for devices.
- One of Mphasis’ existing American healthcare clients has selected Mphasis to enhance and modernise their programme of cybersecurity, addressing regulatory compliance issues and risk management. This particular deal reflects the core values of the company – Hi-Trust, Hi-Tech, and Hi-Touch.
Also Read: Mphasis Ltd Share Price
Q2 Accolades
In Q2, the company has witnessed a few noteworthy recognitions and awards:
- The Economic Times has recognised Mphasis as one of the Best Tech Brands of 2023.
- The Brandon Hall Group has bestowed a Gold award on the company for its successful Hi-Trust, Hi-Tech, and Hi-Touch Candidate Experience Model.
- The Talent Board for North America and EMEA has recognised the company with its Candidate Experience Award.
- Additionally, Mphasis has been recognised as a “Major Contender” in the Everest Group’s Cloud Services Peak Matrix Assessment in 2023” in Europe and North America. This is related to its system integration processes, banking operations services, and other key IT services.
Mphasis Financial Results in a Nutshell
Below is the Consolidated Profit and Loss Account of Mphasis (represented in ₹ Crore)
| Metrics | Q2 FY 2023-24 | Q2 FY 2022-23 |
| Total Income | 2,313.40 | 2,200.77 |
| Total Expenses | 1,782.24 | 1,955.16 |
| Profit Before Tax | 531.15 | 445.60 |
| Profit After Tax | 372.24 | 333.30 |
About Mphasis
Incorporated in 1992, Mphasis serves key customers all over the world including leading international banks, and leading international insurance firms, and has approximately 37,500 employees spread over 21 countries.
Mphasis is the driver for global enterprises through its application of architecture, next-generation design, and engineering services. The company works with the aim of delivering sustainable and scalable technology and software solutions to customers that the company believes are at the core of its success. Mphasis approaches solutions by applying digital technologies over legacy environments and this gives businesses an edge in an ever-changing digital landscape. With unmatched expertise, tools, and advanced architecture, Mphasis uses a purpose-centric approach in its processes and solutions, making its operations effective in the development of robust relationships with prominent clients.
Source:
https://www.mphasis.com/home/corporate/investors.html
