MphasiS slips over 5% on HP revenue concerns, Macquarie downgrade

NEW DELHI: MphasiS slipped over 5 per cent in trade on Tuesday on growing concerns over revenues that the company gets from Hewlett-Packard and downgrade by Macquarie.

Analysts say there are concerns over revenues that the company gets from Hewlett-Packard which owns 60 percent stake in MphasiS, Reuters reported.

"Separately, global investment bank, Macquarie downgraded the MphasiS to "underperform" from "outperform"," added the report.

Over the weekend, HP said it would split into two listed companies and eliminate another 5,000 jobs as part of its turnaround plan.

Mphasis Ltd's (MPHL) parent HP confirmed that it has split its business into two viz. 1) HP Business Enterprise, which will comprise business technology, servers, software, and services and 2) HP Inc, which will house the personal computers, printers, etc.

"Both the companies will be separately listed and traded. This decision of the parent will likely bring a long awaited clarity on MPHL's future as to whether HP will retain this business in India, make it a 100% subsidiary or merge it with HP's India business," Kim Eng India said in a report.

"We like MPHL due to substantial surplus cash with the company and will await clarity from its board of directors in India," added the report.