MphasiS consolidates revenue at Rs 742.2 cr

BANGALORE, INDIA: The MphasiS Group consolidated revenues at Rs 742.2 crores in the current quarter ended 30 June 2008 have increased by 39.6% over last year same quarter.  

During the same period net profit increased by 54 percent from Rs 51.3 crores to  Rs 79.0 crores. Operating profit grew by 24.2 percent from Rs.67.3 crores to Rs 83.5 crores in the same period.  

Sequential quarter revenues grew by 12.9 percent from Rs 657.6 crores in the quarter ended 31 March 2008. Net profits grew by 10.6 percent from  Rs 71.4 crores to Rs 79.0 crores. The operating margin during the quarter increased to 11.2 percent on consolidated revenues. The group added 1206 employees during the quarter. Cash and Bank balance stood at Rs 116.5 crores with 43 days of debtors outstanding 

Profits during the quarter ended 30 June 2008, were impacted by an accelerated amortization of visa costs amounting to Rs 9.3 crores incurred in prior periods. The net margin and operating margin were impacted by 1.3 percent on consolidated revenues due to the change in the accounting treatment. Excluding the accelerated charge, the net profits during the quarter would have increased by 72.1 percent year-on-year and 23.6 percent quarter on quarter. 

Jeya Kumar, CEO said “We had a good quarter. Anticipating changes in our business due to altered global market demands, we undertook specific initiatives to meet the challenges of next generation outsourcing. Our results are an indication of the early benefits of organisational and structural transformation. As we progress into the fiscal, we are expanding aggressively, adding new domain specific services to our portfolio.  We have increased our focus on leveraging technologies to deliver innovative solutions to our clients.” 

During the quarter, the group added 28 new clients including relationships through EDS. These include clients in multiple sectors like banking and financial, telecom, manufacturing, logistics and healthcare covering all the business lines of application services, BPO services and ITO services.