Mphasis Q2 Effects: Benefit rises by way of 8% to Rs 423.33 crore, approves funding of $30 million in subsidiary – Business Information

Mphasis Limited released its fiscal second quarter earnings with profit at Rs 423.33 crore, posting a growth of 8.0 per cent in comparison to Rs 391.95 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 3536.15 crore, up 7.9 per cent as against Rs 3276.50 crore recorded during the same period of previous financial year. The company said that its gross revenue grew by 5.4 per cent YoY in constant currency terms. Further, the operating margin was reported at 15.4 per cent. 

At the operating level, Ebit, it said, rose by 6 per cent sequentially to Rs 544.2 crore in Q2FY25, from Rs 513.5 crore in Q1FY25. As a result, Ebit margin expanded by 40 bps to 15.4 per cent in Q2FY25 as opposed to 15 per cent in Q1FY25.

“Despite many ongoing challenges, the macro environment continues to trend in the right direction. We are witnessing increased AI adoption across clients to address enterprise challenges with higher efficiency and accuracy, beyond cost advantage. Savings led transformation TM thesis is core to all our deal archetypes and solutions, thus significantly enhancing service delivery and savings for clients,” said Nitin Rakesh, Chief Executive Officer, and Managing Director, Mphasis.

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In terms of deal wins, Mphasis said that it recorded new TCV wins of $207 million in Q2FY25 in Direct, of which 88 per cent was in new-gen services. Meanwhile, TCV wins for the first of the year came in at $526 million wherein 3 large deals were recorded in Q2 and 6 large deals were secured during the H1. In a statement, Mphasis said that the conversion to revenue pace has picked up. 

Furthermore, the company also announced that its board has approved further investments of up to $30 million in the equity share capital of Mphasis Europe BV, a wholly owned subsidiary. It added that the primary objective of this investment is to enable Mphasis Europe BV inter alia in repayment of borrowings and the investment will be made by end of March 2025.