Mphasis shares in focus after Q2 net profit rises 4.5% YoY to Rs 423.3 crore

Mphasis shares will be in focus on Thursday after the company reported a 4.6% sequential increase in net profit for the quarter ending September. The net profit stood at Rs 423 crore, up from Rs 404 crore in the first quarter.

Revenue for the second quarter of fiscal 2025 rose by 3.3% to Rs 3,536 crore, compared to Rs 3,422 crore in the previous quarter.

Operating profit (EBIT) grew by 6% to Rs 544 crore, up from Rs 514 crore in the prior quarter, with EBIT margins improving from 15% to 15.4%, remaining within the target range of 14.6% to 16%.


The company secured a total contract value (TCV) of $207 million during the quarter, which includes three large deals, as highlighted in its investor presentation.

Mphasis noted that the TCV wins were broad-based across various verticals, client segments, and strategic customers, with an accelerated pace of conversion to revenue.

Revenue from the banking and financial services segment grew 3.6% sequentially to Rs 1,689 crore. The technology, media, and telecom vertical saw a 6% rise to Rs 582 crore, up from Rs 549 crore in the previous quarter.

Income from the insurance segment rose 2.3% to Rs 387 crore, while the logistics and transportation vertical remained flat at Rs 464 crore.

Mphasis' board also approved an additional investment of up to 30 million euros in its wholly-owned subsidiary, Mphasis Europe BV. The investment, to be completed by March 2025, will be used for the repayment of borrowings.

Its shares have surged 7% in 2024 to date and 38% over the past two years, with the company currently holding a market capitalization of Rs 55,061 crore.

Mphasis, based in Bengaluru, is a multinational IT services and consulting company, offering infrastructure technology, application outsourcing, architecture guidance, application development, integration, and management services.

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