- The midcap IT firm’s net profit grew marginally by 0.5% quarter-on-quarter to ₹341 crore in September quarter.
- The company delivered 9.8% quarter-on-quarter direct revenue growth in the quarter. It believes no other peer has given 30% organic growth in the first half of FY22.
- The company even hired a lower number of employees in the September quarter compared to the last few quarters as it was not very much worried about the attrition rate.
The company’s strong and consistent financial performance in comparison to its peers shows why it remains so unaffected and focused towards its growth.
Both quarters in a row, we’ve actually delivered market leading growth in the direct business. There is no other peer that has delivered 30% plus organic growth in the first half of FY22. Mphasis’ direct segment, which caters predominantly to sectors like banking, diversified financial services and insurance accounts for 50% of its revenue. Not to forget, BFSI is a core client base for most IT firms as there is accelerated demand for cloud migration, software products for digital banking, cybersecurity and so on.
In the September quarter, the IT firm’s revenue grew 6.6% on a quarterly basis to ₹2,869 crore while profit grew marginally by 0.5% to ₹341 crore.
Further, the company is bullish on delivering revenue from its core BFSI segment, which contributes about 50% revenue for the company.
Almost from 5-8 quarters in a row, when peers were actually not growing BFSI by 2% 3%, Mphasis was growing at double digits, now that peers are growing at double digits, Mphasis is growing at 25%. Company has also seeded new markets and new engines of growth.
Company should report an industry-leading double-digit revenue growth rate over FY22E-FY24E [earnings in the next three financial years].
With a strong H1 [first half of FY21] growth, strong deal flow and pipeline, direct business is well poised for industry leading growth again in FY22.
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