Mphasis Q2 Review - Result Weak; Operating Margin To Remain Under Pressure: Dolat Capital

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Mphasis Ltd. reported revenue growth of 6.5% QoQ (DE: 6.6%) led by continued momentum in Direct Business which grew 9.9% constant currency QoQ (DE: 8.0%) which was partly negated by DXC Business decline of 26% QoQ. Operating profit margin declined by 81bps to 15.1% (DE: 16.6%) due to lower utilisation (down 100bps QoQ) and 70bps one time impact from M&A.  Q2 (Net New) TCV Wins stood at $241 million taking the TTM TCV to $1.23 billion (up 22.7% YoY). The commentary highlights continued momentum in TCV and pipeline led by MPHL focused on new client acquisition program across verticals (added 5 clients in Q2, also got access to 10 Fortune logos from Blink integration).OPM would see further contraction on account of 100bps expected impact from Blink in Q3/Q4 towards higher amortisation/retention costs, which along with supply side factor would result in near term pressure in OPM. Mphasis is confident to achieve organic guided band of 15.5%-17% (reported could be lower by ~70bps)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mphasis Q2 Review - Result Weak; Operating Margin To Remain Under Pressure: Dolat Capital

Mphasis Q2 Review - Result Weak; Operating Margin To Remain Under Pressure: Dolat Capital

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