Mphasis (526299) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue was $410 million (₹34,224.62 million), up 3.1% YoY in constant currency, with direct business accounting for 96% of revenue and strong growth in AI-powered deals.

• TCV wins reached $390 million, with 84% powered by next-gen technologies; three large deals included one over $100 million.

• EBIT/operating margin stood at 15%-15.8%, with operating profit and net profit both growing YoY and QoQ.

• AI and GenAI are central to strategy, with new platforms NeoZeta and NeoCrux launched to drive modernization and productivity.

• Consistent operating cash flow and steady DSO observed.

Financial highlights

• Gross revenue for Q1 FY25 was $411 million, up 3.1% YoY and 0.2% sequentially; direct revenue up 0.6% QoQ and 5.6% YoY.

• EPS for the quarter was 21.4, up 2.8% sequentially and 1.8% YoY; consolidated profit after tax was ₹4,045.08 million.

• Cash flow generation was $53 million, about 10% of net income, with operating cash flow consistently above 100% of PAT.

• Standalone revenue for Q1 FY25 was ₹23,181.89 million, up from ₹22,552.77 million in Q4 FY24.

• Standalone profit after tax was ₹4,146.95 million, up from ₹2,982.69 million in Q4 FY24.

Outlook and guidance

• Expect above-industry growth for FY25, driven by tech-led account focus, strong pipeline, and AI-led solutions.

• EBIT margin guidance remains at 14.6%-16%, with continued investment for growth and productivity.

• Anticipate sequential growth in healthcare and continued recovery in BFS and mortgage segments.

• Board approved a final dividend of ₹55 per equity share for FY24.