Mphasis CEO confident of growth accelerating for the rest of FY24

However, Total Contract Value or TCV closures were the highest ever for the company at $707 million.

Rakesh mentioned that there have been some green shoots visible in terms of deal wins, while the nature of the pipeline and deal wins has been broad based. He further said that he sees growth outside the BFSI segment as well, since a significant proportion of the deal wins came from the non-banking space.

“We have seen some early signs where conversion to revenue is also starting to at least get visible. It is nowhere near where it needs to be from a normalcy standpoint,” the MD & CEO said.

The CEO's sentiments on deal wins were echoed by the company's CFO Manish Dugar, who said that contracting has started picking up, and that deal wins were more important for the company during the quarter.

There has been a slight uptick in volumes on the mortgage side as well, according to Rakesh. Mortgage is a business which contributes a significant amount to Mphasis' revenue.

“The reason why we have called out for a base formation or a bottoming out in Q1 is linked to the fact that we have definitely seen some uptick in volumes on the mortgage side, in some segments, especially home equity lines, diligence services, and increasingly in the due diligence space as well as capacity creation requests from customers as they expect these loans to start getting restructured,” Rakesh said.

Within geographies, the Mphasis CEO mentioned that they have been investing in Canada for the last 18 months and that there has been good traction that is coming from the Canada business. Rakesh also mentioned that there has been a good pick-up in the European business pipeline, but the conversion is slow.

“We have seen good traction in Canada in the last quarter that has added USD 40 million plus deal for us, which is a big win for us in that region because we have been investing for the last 18 months in the region,” he said.

Infosys CEO Salil Parekh while speaking to the media in his post-earnings address, spoke about the fact that there are seeing some clients slowing down or stopping discretionary work in the short-term. Mphasis CEO Rakesh agreed to Parekh's statement, saying that the slowdown in discretionary spends is not a company-specific, but an industry-wide phenomena.

Shares of Mphasis have reversed their early losses and are currently trading 2.25 percent higher at Rs 2,263.80.