HP-owned IT services firm MphasiS on Friday said it is open to acquisition of small and medium sized companies, which can help it enhance value proposition in banking and capital markets.
“We are still open to acquisitions from mid-sized to small-sized firms, which can add to our value proposition, especially in the banking and capital market,” MphasiS Chief Executive Officer Ganesh Ayyar told PTI.
Last year, the Bangalore-based IT firm had announced that it will acquire US-based Digital Risk for $175 million (about Rs 960 crore), a move aimed at attaining leadership position in the US mortgage services market. The acquisition was completed last month.
Florida-based Digital Risk is one of the largest independent providers of solutions related to risk, compliance and transaction management to the US mortgage market.
“We have cash and cash equivalents of about $584 million and every month the company adds $10-15 million to its kitty. If we find a good deal matching our requirements, then we will go for it,” Ayyar said.
The company reported a marginal dip in consolidated net profit to Rs 184.4 crore for the quarter ended January 31, 2013, as against Rs 184.84 crore for the November 2011-January 2012 quarter.
Its revenues, however, declined 8.05 per cent to Rs 1,257.08 crore for the reported quarter as against Rs 1,367.18 crore for the corresponding period last year.
On the outlook, Ayyar said situation in the US is improving but Europe continues to be soft. In India, things are also getting better.
“Going forward, we will concentrate more on the banking, capital market and insurance segment with focus on the US, Canada and the UK in Europe,” he added.
The banking and capital market segments contributed Rs 315.98 crore to the quarter’s revenues, while insurance accounted for Rs 154.18 crore.
IT, Communication and Entertainment vertical contributed Rs 317.06 crore and Emerging Industries segment accounted for Rs 493.21 crore of the quarter’s revenues.
“Our direct business is gaining traction and we are seeing pipeline building in the US and India,” Ayyar said, adding that direct vs HP business mix shifted from 42:58 in Q1 FY’12 and 46:54 in Q4, to 48:52 in Q1 FY’13.
MphasiS, which employs around 36,000 people, offers integrated services in applications, infrastructure services and business process outsourcing.