Mphasis Q3 Results Review - Revenue Slows On Delayed Ramp-Ups; TCV, Margins Improve: Anand Rathi
In Q3, Mphasis undershot peers with its sequentially flattish IT services (82% of revenue).
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Anand Rathi Report
In Q3, Mphasis Ltd. undershot peers with its sequentially flattish IT services (82% of revenue). The weakness arose from furloughs and delayed ramp-ups in deals won previously. It did well, however, in its key strengths such as total contract value (net new $401 million) and client mining (first client moving to the $200 million bracket), keeping alive revenue-acceleration hopes.
Business process management (18% of revenue) reflected weakness in mortgages (~50% of BPM) though industry volumes have started stabilising in the last two months.
Margins are trending up; to retain pace as revenue growth returns and utilisation/offshore improve. Mphasis' weak Q3 leads to our ~4% cut in estimates and 3% in the target.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.