Mphasis share price rallies 12%, nears 52-week high on Apr-Jun results, new deal win

Mphasis, Mphasis share, Mphasis share priceMphasis reported a 3.9 per cent increase in consolidated net profit at Rs 275.1 crore in the quarter ended on June 30

Mphasis share price rallied 12 per cent to hit day’s high of Rs 1,097.25 apiece on BSE, a day after the company announced its April-June quarter results, which came in line with Street’s estimates. Mphasis stock is just inches away from its 52-week high of Rs 1,098.90, hit last week. So far, the stock has rallied nearly 80 per cent from March lows, taking the total market capitalisation of the company to Rs 20,426.99 crore. Mphasis reported a 3.9 per cent increase in consolidated net profit at Rs 275.1 crore in the quarter ended on June 30. The company’s net profit stood at Rs 264.6 crore in the corresponding period of the preceding financial year. “The company announced new TCV (total contract value) wins of USD259m in 1QFY21 in Direct International. This is the highest ever TCV win for a quarter for Mphasis and comprises one large deal win of over USD100m TCV,” Motilal Oswal Financial Services said in its latest research report.

The brokerage firm also added that 79 per cent of the deal wins during the quarter are into new-gen services. The company’s revenue from operations grew 10.9 per cent to Rs 2,288.2 crore in the quarter under review from Rs 2,062.5 crore in the year-ago period. “We have had our best quarter ever of deal wins; which, in the current environment, is a testament to the strength of our service offerings and the hard work of Mphasis teams. This sets us up nicely to keep Mphasis on the growth path this year and gain further market share,” said Nitin Rakesh, Chief Executive Officer and Executive Director, Mphasis.

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Research and brokerage firm Reliance Securities believes that there has been a limited impact of temporary suspension of H1-B visa on operating margins. “Indian IT companies are likely to continue to gain market share on the back of a strong talent base, long-standing customer relationship, proven track record and best-in-class practices,” said research analyst Suyog Kulkarni, Reliance Securities. Kulkarni further added saying that Indian IT companies are likely to benefit from potential captive monetization efforts by global enterprises in the medium-term.

At 1 PM, Mphasis shares were trading 11.69 per cent higher at Rs 1,094.30 apiece, as compared to a 0.64 per cent fall in the S&P BSE Sensex. While barring Nifty IT index, all the sectoral indices were trading in the negative territory. Out of 10 constituents in Nifty IT, 7 were trading in green led by gains in Mphasis, NIIT Technologies, Tech Mahindra, HCL Technologies and Mindtree.

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