Mphasis shares jump to all-time high on strong quarterly results

Pune: Shares of rose to an all-time high on Friday, after the mid-size IT services firm reported a 23.5 per cent increase in net profit and new deal wins of $505 million (about Rs 3,760 crore) in its direct business in the fiscal first quarter.

Shares of the Bengaluru-based company ended 5.39 per cent higher at 2,526.05 on the BSE Friday, after rising to a high of Rs 2,692.35 earlier in the day. The benchmark Sensex rose 0.26 per cent.

The company on late Thursday reported a net profit of Rs 339.7 crore for the quarter ended June 30. Revenues grew 16.1 per cent to $363 million.

Direct revenue comprised $323 million, growing 32.5 per cent excluding currency fluctuations from the year-earlier period. This included a $250 million deal with a UK client in the banking, financial services and insurance segment. Revenue through the DXC channel fell 48.7 per cent in constant currency.

“We have had a great start to FY22 with record deal wins of $505 million in our direct business, the highest ever in the history of Mphasis,” chief executive Nitin Rakesh said.

The company said it reported broad-based growth across client segments and added two new clients each in the $100-million-plus and $50-million-plus categories. Its top ten accounts grew 24.5 per cent from a year earlier.