Mphasis CEO says Sonnick acquisition to be growth-accretive
Mphasis' top executives, Nitin Rakesh and Manish Dugar, in a post-earnings chat with CNBC-TV18 called their recent acquisition 'growth accretive' and 'leadership recreative'
Nitin Rakesh, MD and CEO of Mphasis, and Manish Dugar, the company's CFO, shared their insights on the anticipated impact of the Sonnick Partners acquisition.
The Mphasis leadership believes that this strategic move holds the promise of being not only growth accretive but also 'leadership recreative'.
"On a combined basis, we expect that business to generate somewhere in the range of $38-40 million in the current year and this will get consolidated effective October 1,” said Dugar.
On October 13, Mphasis announced that its wholly-owned subsidiary, Mphasis Corporation acquired 100% shareholding in Sonnick Partners LLC along with its subsidiaries, for a cash consideration of up to $132.5 million. The acquired company conducts its business operations by the name "Silverline."
Through Silverline, Mphasis has added a portfolio of marquee clients in financial services, healthcare, and media.
The mid-tier IT solutions company on October 20 reported a 6.3% year-on-year (YoY) decline in consolidated net profit to Rs 391.9 crore for the September quarter. On a sequential basis, net profit was down a percent. Revenue from operations also declined 6.5% YoY to Rs 3,276.5 crore. Topline grew 0.8% sequentially. The earnings were mostly in line with Street estimates.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
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