IT company Mphasis today posted a 10.4 per cent rise in consolidated net profit at Rs 210.7 crore for the second quarter ended September 2016.
The company’s net profit stood at Rs 190.8 crore during July-September 2015, Mphasis said in a statement.
“Net profit improved by 170 basis points year-on-year to 14.3 per cent, adjusted for one-time cost pursuant to Hewlett Packard Enterprise (HPE) stake sale to Blackstone,” Mphasis said in a statement.
However, after including other comprehensive income (net of tax), the total comprehensive income was lower at Rs 172 crore in the reported quarter, from Rs 258.7 crore in the July-September 2015 quarter.
Mphasis’ net sales dipped 2.4 per cent to Rs 1,517.6 crore in the said quarter, from Rs 1,555.3 crore in the year-ago period.
Earlier this year, private equity firm Blackstone had bought a majority stake in Mphasis from Hewlett Packard Enterprise (HPE) for about USD 1.1 billion. The sale was completed as on September 1.
“Our earnings per share (EPS) of Rs 10.32 combined with growth of HP business are significant milestones for us this quarter. Looking ahead, we are confident of our direct core business growing faster than the market,” Mphasis Chief Executive Officer and Executive Director Ganesh Ayyar said.
The company saw its direct international revenue grow 5.1 per cent y-o-y while HP revenue was up 1.5 per cent quarter-on-quarter, the statement said.
“Robust new deal wins continue with USD 83 million total contract value in direct international business, of which 44 per cent are in new generation services,” the statement said.
Revenues from banking and capital market during the reported quarter stood at Rs 753.8 crore while insurance was at Rs 216.7 crore, IT, communication and entertainment at Rs 143.8 crore and emerging industries at Rs 385.2 crore.