The Hindu Business Line : MphasiS net up 26 pc; declares 1:1 bonus

SOFTWARE services firm MphasiS BFL reported a 26-per cent rise in net profit for the year 2004-05 at Rs 124.62 crore, on the back of a 32-per cent rise in consolidated revenues to Rs 765.67 crore, bolstered by new markets, new services and headcount growth. The board has recommended a dividend of 30 per cent for 2004-05 and a bonus issue of shares of 1:1. MphasiS shares rose seven per cent to close at Rs 251 on the Bombay Stock Exchange.

MphasiS expects to continue to show high revenue and profit across the group, with revenues forecast to rise by 25 per cent and profits by 30 per cent in the coming year. Better margins and a consolidation phase of gains from recent acquisitions, backed by `exponential BPO growth' will drive the year ahead, according to Mr Jerry Rao, Chairman and CEO.

"Our IT business has grown at a healthy rate and we have expanded our portfolio of services as well as our geographic footprint", Mr Rao said, adding that the company increased its headcount during the year. IT services headcount increased by 250 during the quarter, reflecting the growth in business and for the whole year, headcount was up to 2,741 from 1,995 people last year.

MphasiS group added 12 new clients during the year, two of them in the BPO business. "Our BPO business has grown exponentially backed by our first mover advantage and we are among the leaders in the industry," Mr Rao said. The company now has 161 IT clients and 35 BPO customers.

Onsite billing rates increased to $67 per hour while offshore rates stayed the same. IT revenues for the fourth quarter grew 11.5 per cent. Operating margins rose to 12.9 per cent in the latest quarter from 11.7 per cent in the previous quarter. MphasiS reported Rs 95.5 crore of cash balance, post its recent acquisitions.

In the quarter ended 2005, MphasiS' BPO business grew 32 per cent to record revenues of Rs 74.25 crore, against Rs 56.24 crore in the corresponding previous period. During the period, net profit for BPO services were Rs 11.87 crore, a 50 per cent rise over Q4 last fiscal.

MphasiS sees tremendous opportunities to grow and evolve the BPO through technology in the areas of integration, automation, workflow management, business activity monitoring and business intelligence, according to Mr Rao.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sierra opens Toronto centre

A mobile phone for tweens

Tata Indicom, Reliance Mobile tie up with filmmakers

Margins on calls enough to absorb ADC: Baijal

Bharti urges review of ADC on roaming calls

Idea's instant validity service

BEL reworking simputer with low-cost chips

Size needed for growth, says Pawan Kumar

Teledata gets repeat order

Helios & Matheson to buy vMoksha

Ascendas buys Tata's stake in ITPL

Infotech Melbourne office

ITES-BPO sector to grow to $12 billion by 2006: ICRA

MphasiS net up 26 pc; declares 1:1 bonus