BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Mphasis Ltd.'s strong revenue growth of 6.1% QoQ in dollar terms was driven by exceptional performance in Direct core business (+9.5% QoQ $) partially offset by sharp decline in DXC (-25.7% QoQ $).
Revenue share of DXC has now declined to 6.5% (vs 16% in Q2 FY21). Direct core business now contributes to 92% of total revenue and going forward, overall growth will be increasingly reflected by Direct core business.
We expect Direct core to deliver industry leading growth in FY22 (~32% YoY).
MPHL had healthy new TCV wins of $241 million in Q2 FY22 in Direct business, of which 68% are in new generation services. YTD TCV is at $747 million, grown at 50% CAGR over last two years.
Management mentioned that demand momentum continues to be strong and sustainable which is also reflected by growth in new gen large deal pipeline (+28% YoY and +13% QoQ).
We continue to like MPHL because of their
1) industry leading growth in Direct channel,
2) market share gains against larger peers,
3) consistent improvement in client mining and cross-selling,
4) deep presence within sub-segments across verticals and
5) stable operating margin performance compared to peers.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
