Mphasis gains 3% even as consolidated profit declines 1.7% for fourth quarter
Mpahsis’s revenue has declined for the second consecutive quarter due to a weakness in banking, tech media and telecom segments.
Shares of midcap IT company Mphasis climbed nearly three percent in early morning trade on Friday, even as the company's revenue declined for the second consecutive quarter due to a weakness in banking, tech media and telecom segments.
“The macro-economic environment remains uncertain while we continue to look for alignment with our client’s current priorities. Strategic technology spending may have slowed down, however, hasn’t been paused. Enterprises continue to invest in Cloud, Digital Transformation, and consolidation priorities. Institutionalising cost transformation projects is enabling them free up working capital," said Nitin Rakesh, Chief Executive Officer, and Managing Director, Mphasis.
"We see these as opportunities for proactive deal making and gaining share of wallet, translating into a strong pipeline and continued deal conversion,” he added.
Mphasis reported its financial results for the fourth quarter of financial year 2023 on Thursday. The company posted net profit of Rs 405.307 crores for the period ended March 31, 2023 declining 1.7 percent from a net profit of Rs. 412.272 crores for the corresponding period a year ago. A CNBC-TV18 poll had estimated a profit of Rs 411 crore.
The company reported a decline in gross constant currency revenue down 4.5 percent QoQ and 3.1 percent YoY.
Meanwhile the company’s deal wins are still healthy $309 million as compared to a four quarter average of $338 million.
How have the Midcap IT Q4 earnings been?
When it comes to Midcap IT stocks, Persistent Systems reported a profit of Rs 251.5 crore for the quarter ended March 2023, 6.9 percent below the CNBC-TV18 estimate of Rs 270 crore. However, the profit increased sequentially.
Meanwhile Coforge reported net consolidated profit of Rs 116.7 crore for the March quarter of FY23, declining 48.08 percent from Rs 224.8 crore in the corresponding period a year ago. The profit was down largely due to a one-off expense of Rs 52.3 crore marked as the provision for its curtailed fundraising bid approved in 2021.
Revenue from operations stood at Rs 2,170 crore, up 24.50 percent from Rs 1,742.9 crore in the corresponding quarter a year ago, the company said in an exchange filing.
Engineering services company L&T Technology Services (LTTS) reported an 18 percent year-on-year jump in net profit at Rs 309.6 crore for Q4FY23.
First Published: Apr 28, 2023 11:17 AM IST
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