Mphasis Feb-Apr profit falls 18.7%; stock down

BANGALORE: HP-owned Mphasis, which counts its parent among top customers, said the company's profit for quarter end April 30 dropped 18.7% to 219.29 crore.

In a late evening filing with the BSE, Mphasis said its revenues for the February to April quarter grew to 1,257.1 crore from 1,220.5 crore reported during the same period last year.

At 10:19 am, shares of Mphasis were trading 3.22 per cent down at Rs 435 on the Bombay Stock Exchange.

The company's shares tanked last quarter too, after it cut prices on contracts awarded by its parent HP and investors questioned the company's corporate governance standards.

Around 70% of revenues of Bangalore-based MphasiS comes from HP. About 10% is from projects it does for HP and the remaining 60% is through sub-contracting work.

In the previous quarter, MphasiS posted a net profit of 227 crore, a 16% drop over the year-ago quarter and a drop of 20% quarter-on-quarter.

HP, the largest shareholder in Mphasis and also its largest customer, is anticipating a tough year ahead and has cut a billion dollars from its sales forecast for the year.