Mphasis Ltd Q3 PAT up 9.88% at Rs357.68cr a higher manpower and outsourcing costs put pressure

21 Jan 2022 , 12:28 PM

Mphasis Ltd reported 26.24% growth in total revenues for the Dec-21 quarter on consolidated basis at Rs3,123.72cr. On a sequential basis, the revenues were higher for the quarter by 8.87%.

During the quarter, Mphasis reported top line growth traction across BSI, logistics and TMT verticals. New TCV wins in the quarter were to the tune of $335 million.

Sequential revenues were up 7.8% in constant currency terms. The largest deal signed in the quarter had a TCV of $92 million. Direct revenues were also higher by 10% sequentially.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 9.88% at Rs357.68cr. Banks and financials contributed bulk of the profit growth while insurance saw profits falling sharply in the quarter.

The profit growth was slower than sales growth as cost of manpower and the cost of outsourcing went up sharply in the quarter. PAT margins were lower from 13.16% in Dec-20 to 11.45% in Dec-21 quarter.

Sequential net margins were also lower by 45 bps as the pressure of manpower and the higher attrition rates were telling.

Financial highlights for Dec-21 compared yoy and sequentially

	Mphasis Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 3,123.72	₹ 2,474.39	26.24%	₹ 2,869.23	8.87%
Net Profit (Rs cr)	₹ 357.68	₹ 325.53	9.88%	₹ 341.46	4.75%
Diluted EPS (Rs)	₹ 18.85	₹ 17.22		₹ 17.96
Net Margins	11.45%	13.16%		11.90%