MphasiS posts Rs.1,405-Crore Revenues in Q2 FY 2013
MphasiS has reportedly announced its financial results for the second quarter ended April 30, 2013, which revealed that consolidated revenues for the second quarter were at Rs.1,405-crore, up by 11.8% sequentially and 5.8% YoY.
The report revealed that the direct channel revenues (including Digital Risk) grew by 24.8% QoQ and 37.7% YoY to Rs.775 crore. The Direct channel contribution has now crossed 50% of the total revenues. The Direct business saw a healthy addition of 10 new logos out of which 6 were in the Company’s focus verticals of Banking and Capital Market (4 additions), and Insurance (2 additions). The total client additions for the quarter stood at 21.
As far as the operating margin is concerned, it stood at 14.7%, down from 15.5% in Q1 on account of the integration of lower margin Digital Risk for the quarter. Net profit for the quarter declined 4.3% QoQ and 6.8% YoY to Rs.177 crore on account of lower other income as we deployed funds towards the acquisition of Digital Risk as well as towards the payment of dividend.
"We are witnessing good traction in the Direct business in the US with a growing pipeline testimony to our hyper-specialization approach. The acquisition of Digital Risk has gone well; we have won a large $60 million TCV contract from a BFSI client with potential upside of US$40 million based on further volume. We are enthused by growth prospects going forward," said Ganesh Ayyar, Chief Executive Officer, MphasiS.
Further, effective tax rates increased to 25.1% due to higher tax rates applicable on Digital Risk profits, increase in tax surcharge in India and expiry of the initial five-year tax holiday in some of the Company’s delivery centres located in the Special Economic Zones. EPS for the quarter stood at Rs.8.4 as against Rs.8.8 in Q2 and Rs.9.0 during the same period last year.
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