HEADLINES:
June 26 2019
Mphasis net profit rises 37% on higher DXC/HP revenue
19 October 2018

Operating profit jumped 36% to Rs. 3,145 million while operating margin improved by 200 basis points year-on-year.

Mphasis, a Bengaluru-based provider of cloud and cognitive services, announced Friday its net profit grew 37% year-on-year to ₹ 2,709 million during the second quarter ended September riding on higher revenue from its partnership with DXC Technology.

DXC Technology, an end-to-end IT services firm and Mphasis had signed a solution partner relationship “to modernise enterprise applications for the public, private and hybrid cloud.” DXC/HP revenue rose 34.7% year-on-year on a reported basis and 24.7% in constant currency.

Revenue of Mphasis grew 24.5% to 1,948 crore and a total contract value of new deal wins stood at $210 million in the second quarter, according to a company statement. DXC/HP business contributed 28% of the overall gross revenue.

“We are pleased with the health of our pipeline and continued strong execution across multiple vectors especially in new generation services,” said Nitin Rakesh, chief executive officer and executive director of the BSE-listed company.

Operating profit jumped 36% to Rs. 3,145 million while operating margin improved by 200 basis points year-on-year.

Americas accounted for 80% of its revenue. For onsite application services, its mainstay, Mphasis charged $86 an hour and $22 offshore compared with $83 and $21 a year earlier. The company has hedged $529 million against $417 in the same period of the previous year.

Mphasis had cash and cash equivalents of ₹2,518.5 crore at the end of September up from ₹2,108 crore last year.

 

 

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