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Mphasis declines after muted Q3 performance

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Capital Market
Last Updated : Jan 20 2023 | 12:04 PM IST

Mphasis slipped 1.91% to Rs 2026.70 after the IT reported 1.5% fall in consolidated net profit to Rs 412.3 crore on a 0.4% declin in revenue from operations to Rs 3,506.2 crore in Q3 FY23 over Q2 FY23.

As compared with Q3 FY22, the company's net profit and revenue grew by 15.3% and 14.2%, respectively.

In constant currency, revenue declined 2.5% QoQ and grew 5.7% YoY.

The company said that it has recorded new TCV wins of $401 million in Q3 FY23 in direct international business, of which 74% in new generation services. Five large deal were bagged in Q3 FY23, which is highest ever on record to date; FYTD TCV wins is over $1 billion.

Nitin Rakesh, chief executive officer and managing director, Mphasis, said: This quarter reflects the duality in our current business environment. On one hand, our core business continues to perform well. On the other hand, there are cyclical headwinds due to market hypersensitivity in our mortgage business, with interest rate movements.

We continue to have a strong market share and wallet share gains in our chosen segments, as reflected in our TCV wins and pipeline. We are happy with the optimization efforts we undertook in 2022, including accelerated fresher adoption and enhancing operational efficiencies, enabling us to invest and still hold the EBIT margins.

Mphasis is an information technology (IT) solutions provider specializing in cloud and cognitive services.

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First Published: Jan 20 2023 | 11:48 AM IST

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