Comments
Dolat Capital
Mphasis (Buy)
CMP: ₹445
Target: ₹525
Mphasis is a leading IT solutions provider, offering applications, BPO and infrastructure services globally through a combination of technology knowhow, domain and process expertise.
Mphasis (then, Mphasis BFL) was formed in June 2000 after the merger of the US-based IT consulting company Mphasis Corporation (founded in 1998) and the Indian IT services company BFL Software (founded in 1993).
Mphasis Q3FY16 results were a mixed bag as dollar revenue declined 3.4 per cent q-o-q dragged by the Hewlett Packard channel; however, the direct channel grew 2.5 per cent q-o-q. Operating profit margin dipped 70 bps q-o-q to 13.2 per cent despite negative impact of salary hike/Chennai shut-down.
Mphasis signed TCV of $61 million driven by digital segment. Growth in Digital Risk is expected to be muted over next the two quarters but we believe IMS/digital segment will continue to drive growth in the direct international business. We cut our FY17/FY18 earnings estimate by 7 per cent/5 per cent due to sharper decline in the HP channel.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.