MphasiS Q3 net profit up 57%
By siliconindia   |   Friday, 09 January 2004, 20:30 IST
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BANGALORE : Mphasis BFL group’s net profit in the third quarter of the current fiscal has grown 57% on a year-on-year basis. Net profit was Rs 28.5 crore (Rs 18.2 crore for the comparable quarter last year). Revenues were at Rs 148.6 crore, representing a 28% year-on-year rise. Revenue from software services in Q3 was Rs 100.3 crore, a sequential 2.2% growth over the previous quarter. Net margins in the software business have remained steady at 21%. Over 204 people were added in Q3. The group’s BPO subsidiary, MsourcE, made revenues of Rs 48.3 crore in Q3, against Rs 26.2 crore in the corresponding quarter last year. Net profit was Rs 7.6 crore, more than double the Rs 3.6 crore made in the previous quarter. As a percentage of total revenues, the net profit was 15.6% for Q3, compared to a net profit of 8% during Q2. Jerry Rao, chairman and managing director of the company, said, “The group has had a very good quarter with profits at our BPO subsidiary showing remarkable growth. Client additions in the software business have been particularly encouraging.” In a post-results teleconference with analysts, he said the company has a strong pipeline for the next few quarters, in response to which there has been incremental bench both onsite and offshore and increase in hiring. During the quarter, the group added 10 new clients including one in its BPO arm. Software manpower utilisation was at 71%, while it was 67% in its BPO service. The group derived 62% of its revenue from financial services vertical. Like other software service vendors, US is the biggest market for the company, contributing to 78% of the total revenue. As of end December, the number of employees in MphasiS were 1,811, while MsourcE had 3,418 employees.

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