MphasiS publishes results of different verticals

BANGALORE: Under pressure from investors and analysts over corporate governance concerns, IT and BPO firm MphasiS on Thursday published the results of its different verticals and average realization rates.

MphasiS had discontinued the practice of publishing this information stating that this was owing to its revised organizational structure. A company statement said that they would continue to publish this information for the next four quarters.

MphasiS was earlier attacked for its lack of proper disclosures and transparency regarding billing rates for the work it does for HP, which owns over 60% stake in the domestic firm. MphasiS garners around 69% revenue from its parent.
Corporate governance concerns along with a weak January 31, 2011 quarter ending results led to the stock’s biggest fall on February 25. It fell 28.4% to Rs 448 on the BSE. On March 2, the company closed at Rs 450.80.

MphasiS, which follows a November to October fiscal, reported an 8% sequential decline in revenue to Rs 1,216.4 crore and a 20% fall in net profit to Rs 226.7 crore for the quarter ended January 2011. On an annual basis, revenues rose 5.2%, while profits fell 15.5%. According to the newly presented “towerwise” information, the application services vertical saw a 2.4% annual fall and 9.5% sequential fall in revenues to Rs 790.5 crore in the quarter ending January 31.

The ITO (infrastructure technology outsourcing) services vertical rose 47.2% annually , but fell 6.4% sequentially to Rs 290.2 crore, while BPO services revenues fell 17.4% annually and 5.4% sequentially to Rs 152.8 crore.

As for billing rates, the onsite applications rate stood at $72 per hour, while the onsite ITO rate was $67. The offshore applications and ITO billing rates stood at $19 each, while the offshore BPO billing rates stood at $7. For offshore applications , it’s a big fall from the $23 that it saw a year ago. Analysts may see this as unusual.