Mphasis - 1QFY2013 Result Update - Angel Broking

Mphasis - 1QFY2013 (CMP: Rs. 374/ TP: Under review/ Upside: -)

Mphasis announced its 1QFY2013 numbers which underperformed our expectation on the revenue as well as operating front. The dollar revenues came in at US$238mn, down 3.9% qoq, due to decline in onsite volumes on account of holiday season which resulted in shutdown for few days.

Revenues from the direct channel grew by 1.0% while revenues from the HP channel declined by 3.9% qoq. In INR terms revenues came in at Rs. 1,257cr, down 3.8% qoq. The company again witnessed headcount reduction in Application as well as ITO business by 173 and 15 employees, respectively. The EBITDA margin of the company declined by 215bp qoq to 18.5%. PAT came in at Rs. 184cr, down 12% qoq. The company added 22 new clients during the quarter, out of which 14 were added in direct channel. The company remained committed to increase revenues from the direct channel.

The stock is currently under review.

Source : Equity Bulls

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