Full Year 2024 Mphasis Ltd Earnings Call Transcript
Key Points
- Mphasis Ltd (NSE:MPHASIS) reported a sequential revenue growth of 2.1% in Q4 FY2024, indicating a positive trend.
- The company has a strong pipeline in cloud transformation and consolidation, with significant TCV wins amounting to $1.38 billion in FY24.
- Mphasis Ltd (NSE:MPHASIS) has been investing heavily in AI and automation, which has led to several successful engagements, including an AI-driven IT production support engagement for a top US bank.
- The company has diversified its revenue streams, with emerging verticals such as insurance, TMT, logistics, and transportation now accounting for 52% of revenue.
- Mphasis Ltd (NSE:MPHASIS) has shown strong operational cash flow, with cash flow generation at USD55 million for Q4, representing 116% of net income.
- Despite the positive trends, Mphasis Ltd (NSE:MPHASIS) reported a decline in full-year revenue by 6.5% over the previous year in constant currency terms.
- The company's top 10 accounts declined by 10.8% YoY on an LTM basis, impacted by macro conditions and regional banking issues.
- The EBIT margin stood at 14.9%, which was impacted by acquisition costs and losses in cash flow hedges.
- The TCV wins have been sequentially declining over the year, raising concerns about future deal closures.
- The mortgage segment remains stable but has not shown significant growth due to the unchanged interest rate environment.
Good morning, ladies and gentlemen. Thanks for joining the Mphasis Q4 FY2024 earnings conference call. I'm Zico Pereira, your moderator for the day. We have with us today Mr. Nitin Rakesh, CEO of Mphasis, and Mr. Manish Dugar, our CFO.
As a reminder, there is a webcast link in the call invite mail that the Mphasis management team would be referring to today. The same presentation is also available on the Mphasis website, www.mphasis.com, in the Investors section under the Financial and Filing as well as on both the BSE and NSE website. Request you have the presentation handy.
(Operator Instructions) Please note that this conference is being recorded. Before we begin, I would like to state that some of the statements made in today's discussion may be forward looking in nature and may involve certain risks and uncertainties. A detailed statement in this regard is available in the Q4 results release that has been sent out to all of you earlier.
I now hand over the floor to Mr. Nitin to begin the proceedings of this
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