IT solutions provider Mphasis has reported a 22.6 per cent y-o-y rise in net profit to ₹418.5 crore for the quarter ended September 30, missing street expectations. On a sequential basis, the profit rose 4.1 per cent from ₹401.90 crore in the last quarter.

The net revenue grew 22.7 per cent y-o-y to ₹35,19.82 crore. On a q-o-q basis, revenue grew 3.2 per cent. In constant currency terms, the net revenue grew 1 per cent q-o-q and 15.6 per cent y-o-y.  Its net margin grew 10 bps q-o-q and remained unchanged y-o-y at 11.9 per cent in Q2.

‘Strong pipeline’

Nitin Rakesh, MD & CEO, said, “Our deal wins are fairly steady despite the macro factors and our pipeline is strong and the margins are also stable. Although demand continues, some projects are being deprioritised and there is a little bit of caution as the scrutiny on spending is getting higher. However, given the specific portfolio we play with, we remain optimistic and will continue to keep a watch on how the macro evolves.”

The earnings per share (EPS) grew 4 per cent q-o-q and 22 per cent y-o-y to ₹22.2 in Q2. During the quarter, the company reported net new total contract value (TCV) orders of $302 million in direct. Two large deal wins in the quarter totaled $110 million.

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Mphasis’ scrip tumbled 4.87 per cent to ₹2,046.35 on the BSE on the day.

“There is a slight weakness in our mortgage business and we have also seen some specific pockets of weakness as well, which was an unexpected surprise. These could be the reason behind the unhappy markets,” Rakesh said.

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