Q1 2025 Mphasis Ltd Earnings Call Transcript
Key Points
- Mphasis Ltd (NSE:MPHASIS) reported a strong pipeline growth, with an overall increase of 22% year over year and 17% sequentially.
- The company launched two new platforms, Mphasis NeoZeta and Mphasis NeoCrux, aimed at transforming legacy applications and improving software engineering productivity.
- Mphasis Ltd (NSE:MPHASIS) recorded healthy TCV closures in Q1 at $319 million, with broad-based wins across verticals and client segments.
- The company saw sequential growth in its BFS segment for two consecutive quarters, indicating a recovery in this key vertical.
- Mphasis Ltd (NSE:MPHASIS) maintained a stable EBIT margin of 15%, despite acquisition costs impacting margins by 0.8%.
- The company's Q1 revenue growth was modest at 3.1% YoY in constant currency terms, with a slight decline of 0.1% sequentially.
- Top 10 accounts declined by 10.1% on a year-over-year basis, impacted by macroeconomic factors and regional banking issues.
- The BPO segment saw a sequential decline of 2.1%, attributed to project completions and ramp-up of new projects.
- The healthcare vertical experienced a decline due to project completions, impacting the overall 'Others' segment.
- Despite a strong pipeline, the conversion from TCV to revenue has been slow, affecting immediate revenue growth.
Good morning, ladies and gentlemen, and thanks for joining the Mphasis Q1 FY 2025 earnings conference call. I am Dorvin, your moderator for the day. We have with us today, Mr. Nitin Rakesh, CEO of Mphasis; and Mr. Manish Dugar, CFO.
As a reminder, there is a webcast link in the call invite mail that the Mphasis management team will be referring to today. The same presentation is also available on the Mphasis website, www.mphasis.com, in the Investors section on the financial and filing as well as on both the BSE and NSE websites. Request you to 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 risks and uncertainties. A detailed statement in this regard is available in the Q1 results release that was sent out to all of you earlier.
I now hand over the floor to Mr. Nitin to begin the proceedings of this call. Thank you,
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