Mphasis Reports Strongest Sequential Growth in 12 Quarters

Mphasis Ltd. posted its fastest sequential revenue growth in 12 quarters in January-March, driven by strong performance in banking and financial services, and technology, media, and telecom verticals, as well as the ramp-up of large deals and reversal of furloughs.

The company reported consolidated revenue of ₹37.10 billion, up 4.2% on quarter and nearly 9% on year, slightly ahead of Street expectations of ₹37.04 billion. In constant currency terms, direct revenue rose 3.8% on quarter and 6.8% on year.
Consolidated net profit rose over 4% sequentially to ₹4.46 billion, beating analysts' estimates of ₹4.38 billion. On a year-on-year basis, profit rose 13.6%.

The EBIT margin for January–March was steady at 15.3%. For 2024-25, the margin improved 20 basis points to 15.3%, and the company guided a range of 14.75–15.75% for the upcoming quarters.

Total contract value for January–March rose 11% sequentially to $390 million—the highest in seven quarters. For 2024-25, it stood at $1.27 billion, with 13 large deals added during the year, including two in the last quarter.

For 2024-25, consolidated net profit grew 10% on year to ₹17.02 billion, while revenue rose 7% to ₹142.30 billion. Direct revenue in constant currency terms rose 5.6% to ₹136.60 billion.

In January–March, revenue from the banking and financial services vertical—the largest contributor—rose 7.2% on quarter to $215 million. The technology, media, and telecom vertical posted the highest growth at nearly 10% on quarter to $77 million. Insurance revenue was flat at $49 million. Logistics and transportation sales fell over 7% due to macroeconomic pressures.

For the full year, the technology vertical led growth with a 13.5% rise to $283 million, followed by insurance, which grew 9% to $192 million. BFSI revenue rose 8% to $817 million.

Geographically, the Americas accounted for 82% of the January–March revenue, rising 3.7% on quarter to $353 million. Sales from Europe, West Asia, and Asia saw a marginal sequential growth but were down 5% on year. For 2024-25, revenue from the US grew 6% to $1.37 billion, while sales from other regions declined nearly 3% to $177 million.

Mphasis declared a dividend of ₹57 per share for 2024-25.