MidCap IT company Mphasis’ net profit declined for the second consecutive quarter due to an uncertain macro environment and weakness in banking sector.
Mphasis posted a net profit of Rs 405.3 crores for the March quarter, a decline of 1.7 % from a net profit of Rs 412.2 crores the company made in the preceding quarter of FY23. The net profit for the company in September quarter was at Rs 418 crore.
The IT firm’s revenue for the last quarter of FY23 was at Rs 3,361 crore, down by 4.1% from the revenue for the preceding quarter that was at Rs 3,506 crore.
However, for the full financial year, the company reported a revenue of Rs 13,798 crore, up by 15.5% from the revenue of Rs 11,961 crore in FY22. Its net profit grew 14.5% to Rs 1,638 crore in FY23.
Nitin Rakesh, CEO and MD, Mphasis, said, “The macro-economic environment remains uncertain while we continue to look for aligning with our client’s current priorities. Strategic technology spends may have slowed down, however, hasn’t been paused.”
Nitin added, “Enterprises continue to invest in cloud, digital transformation, and consolidation priorities. Institutionalizing cost transformation projects is enabling them free up working capital. We see these as opportunities for proactive deal making and gaining share of wallet, translating into a strong pipeline and continued deal conversion.”