Mphasis Q3 Update: Marginal Profit Rise, Strong Deal Wins Boost Confidence

 

Mphasis Ltd, a leading IT solutions provider, posted a slight increase in net profit for the December 2024 quarter. The company reported a net profit of ₹427.8 crore, marking a 1% growth from ₹423.3 crore in the previous quarter. Revenue also saw a modest uptick, rising 0.7% to ₹3,561.3 crore compared to ₹3,536.1 crore in Q2 FY25.

 

The company’s EBIT stood at ₹545.5 crore, reflecting a marginal rise of 0.2% from ₹544.2 crore in the previous quarter. However, the operating profit margin slightly declined to 15.3% from 15.4% in Q2.

 

One of the highlights of the quarter was a 46% surge in the total contract value (TCV) of deals, reaching ₹2,900 crore. The Banking and Financial Services (BFS) segment, which accounts for nearly half of Mphasis’ revenue, showed strong growth with a 9% increase. This was attributed to higher client spending and recovery in the mortgage sector.

 

Ahead of the earnings announcement, Mphasis shares climbed nearly 4% to close at ₹2,920 on Thursday, pushing the company's market capitalization to ₹55,393 crore.