In This Article:
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Revenue: $430 million in Q4 FY25, a growth of 2.9% sequentially and 5.4% year over year in constant currency terms.
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Direct Revenue: Increased by 3.8% sequentially and 6.8% year over year in Q4 in constant currency terms.
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BFS Revenue: Up 5.6% sequentially and 11.8% year over year in Q4 FY25 in constant currency terms.
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TMT Revenue: Grew 9.6% sequentially and 22.1% year over year.
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EBIT Margin: Stable at 15.3%.
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Operating Profit: Grew 3.9% sequentially and 11.7% year over year.
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EPS: INR23.5, the highest ever in a single quarter, with a 4.1% sequential and 12.9% year over year growth.
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Operating Cash Flow: USD52 million for the quarter, 100% of net income.
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Deal Pipeline Growth: 86% year over year and 26% sequentially at the end of Q4.
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TCV Wins: $390 million in Q4, the highest in the past seven quarters.
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Dividend: INR57 per share recommended for the full year FY25.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mphasis Ltd (BOM:526299) reported a significant increase in its deal pipeline, with a growth of 86% year over year and 26% sequentially.
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The company achieved its highest quarterly growth in 12 quarters, driven by strong performance in the BFS and TMT verticals.
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Mphasis Ltd (BOM:526299) secured $390 million in total contract value (TCV) wins in Q4, marking the highest TCV wins in the past seven quarters.
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The company's AI-led transformation deals are driving record growth, with 59% of the TCV in Q4 being AI-led.
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Mphasis Ltd (BOM:526299) maintained a stable EBIT margin of 15.3% despite macroeconomic uncertainties, demonstrating effective cost management.
Negative Points
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The logistics and transportation vertical experienced a sequential decline of 7.7%, impacted by macroeconomic factors.
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There is uncertainty in the macro environment, particularly affecting industries like global trade, logistics, and supply chain, which could delay decision-making.
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The company faces challenges in client decision-making due to tariff uncertainties and global trade issues.
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Despite strong deal wins, there is a risk of delayed ramp-ups in certain segments due to macroeconomic volatility.
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Mphasis Ltd (BOM:526299) has a lower margin band of 14.75%, indicating potential concerns about future margin pressures.
Q & A Highlights
Q: Have you seen any major drop-off in client conversation rates or deal bookings towards the end of the quarter? A: Nitin Rakesh, CEO, explained that the impact of tariffs and other uncertainties has affected certain industries like logistics and manufacturing more directly, causing indecision. However, sectors like banking and healthcare have not shown significant impact yet. The company is not seeing deals getting canceled but acknowledges some decisions are being pushed out.