Mphasis 01/02 net soars, optimistic on 02/03

MUMBAI: Indian software services firm Mphasis BFL Ltd., which on Tuesday

reported a slightly higher than forecast net profit for the year to March 2002,

said its call center business had grown rapidly but its main software services

remained under billing rate pressure.

The Bangalore-based firm said full-year net profit rose 201 per cent to Rs

409.8 million while revenue rose 14.6 per cent to 3.13 billion, against its

forecast in January of a net profit of Rs 400 million and revenue of Rs 3.9

billion.

Its fourth-quarter net profit also jumped, rising a whopping 79 per cent

despite revenue dipping slightly, as a result of lower selling expenses, foreign

exchange gains and no provision for doubtful debt in contrast to the previous

year. "Our story this quarter has been one of ramping up our

capabilities," Jerry Rao, chairman and managing director of the firm said

in a statement.

The firm also expressed optimism that profit and revenue would grow robustly

in this year, causing its shares rise over six per cent at the Bombay Stock

Exchange. In early afternoon, ithe shares partly erased gains and were up 3.82

per cent at Rs 612.

Mphasis forecast net profit in the current year to grow 60 to 70 per cent and

revenue to rise 25 to 28 per cent.

Call centres



Revenue of Mphasis alone grew a little more than eight per cent, while that of
its call center subsidiary MsourcE, which accounts for eight per cent of total

revenue, grew nearly 360 per cent, the company said on its Web site

www.mphasis.com.

Mphasis said volumes increased significantly in its software services

business, particularly from clients in the banking and financial sectors,

although billing rates were under pressure. But its MsourcE subsidiary's volumes

as well as billing rates grew, it said. MsourcE now has ten clients.

The company added two software development centres in Mumbai and Pune during

the quarter and one call center in Bangalore. Its total employee strength

increased to 1,945 people, including 705 people in the call centres.

Mphasis said it added 11 new clients during the quarter ended March. "We

are well poised to take advantage of the situation when the markets

improve," Rao said. Chief financial officer Ravi Ramu told Reuters in

Bangalore that things were looking up for the company. "There is no flood

of good news, but it looks like the worst is over".