Mphasis Ltd.'s share price gained on Thursday after the company announced the July-September quarter earnings with the profit meeting analysts' estimates. The net profit of the company rose 4.6% on a sequential basis to Rs 423 crore, according to an exchange filing. Analysts' consensus estimates compiled by Bloomberg had projected a net profit of Rs 416 crore.
Revenue increased 3.3% to Rs 3,536 crore from Rs 3,422 crore in the second quarter of fiscal 2024. The Bloomberg estimate was Rs 3,516 crore.
Operating profit, or EBIT, advanced 6% to Rs 544 crore, compared to Rs 514 crore in the previous quarter. EBIT margin improved from 15% to 15.4%, within the target band of 14.6% to 16%.
The total contract value for the quarter was $207 million, which includes three large deals secured during the period, the company said in an investor presentation.
Mphasis said the TCV wins are broad-based across verticals, client pyramids, and strategic customers, and the pace of conversion to revenue has picked up.
Mphasis Share Price Movement
Mphasis stock was trading 3% higher at Rs 2,999 by 10:25 a.m.
Shares of Mphasis advanced 4.4% intraday to Rs 3,039 apiece. The scrip was trading 3% higher at Rs 2,999 as of 10:25 a.m. The benchmark NSE Nifty 50 was down 0.6%.
The stock has risen 31% in the last 12 months and 10% on a year-to-date basis. The total traded volume so far in the day stood at 8.4 times its 30-day average. The relative strength index was at 40.
Fifteen out of the 35 analysts tracking Mphasis have a 'buy' rating on the stock, 10 recommend a 'hold' and 10 suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target of Rs 2,989 implies a potential upside of 0.5%.
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