Q2 2025 Mphasis Ltd Earnings Call Transcript
Key Points
- Mphasis Ltd (BOM:526299) reported a sequential revenue growth of 2.4% in constant currency terms, marking one of the best performances in recent quarters.
- The company has seen a significant increase in its pipeline, up 23% year over year, with 35% of the pipeline being AI-led initiatives.
- Mphasis Ltd (BOM:526299) has successfully executed three large deal wins in the quarter, contributing to a total of six large deals in the first half of the fiscal year.
- The company's direct business revenue grew by 6.2% year over year, with strong performance in the BFS and TMT verticals.
- Mphasis Ltd (BOM:526299) expanded its EBIT margin by 40 basis points to 15.4%, demonstrating effective cost management and operational efficiency.
- The company experienced a decline in the logistics and transportation segment, attributed to normal fluctuations in client spending cycles.
- There is a noted elongation in sales cycles for transformation deals, partly due to increased scrutiny on ROI and AI infusion.
- Mphasis Ltd (BOM:526299) reported a decrease in cash flow generation, attributed to delayed collections and dividend payouts.
- The company's DSO increased by five days over the previous quarter, indicating potential challenges in receivables management.
- Despite a strong pipeline, the total contract value (TCV) of deal wins was slightly lower than historical averages, raising concerns about deal conversion rates.
Good morning, ladies and gentlemen, and thanks for joining the Mphasis Q2 FY 2025 Earnings Conference Call. I am Dargan, your moderator for the day. So we have with us today Mr. Nitin Rakesh, CEO of Mphasis; Mr. Arvind Vishwanathan, CFO; and Mr. Vinay Kalingara, Head of Investor Relations.
As a reminder, there is a webcast link in the call invite mail. The same presentation is also available on the Mphasis website, www.mphasis.com, in the Investors section under 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 certain risks and uncertainties. A detailed statement in this regard is available in the Q2 results release that was sent out to all of you earlier.
I now hand the floor over to Mr. Nitin to begin the proceedings of this call. Thank
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