Mphasis Q3 Results Review - Banking, Financial Services Picture Is Still Murky: Nirmal Bang

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Mphasis Ltd.’s Q3 FY24 revenue grew 1% QoQ but declined 6.3% YoY in USD terms and was weaker than our estimate of $ 411 by 2.2%. Acquisition Silverline delivered ~$15 million in revenue in the quarter. Organic revenue declined ~2.8% QoQ against our estimated decline of 0.5% due to deeper furloughs. If you look across the sector, this will probably be the weakest growth QoQ..Mphasis indicated that there would be reversal of the furlough impact in Q4 FY24 and some extra growth on top of it. That has led us to assume 3% QoQ growth in Q4 FY24. It has also indicated selective pick up in discretionary spending especially that connected with artificial intelligence related work..Post Q3 FY24 we have tweaked our earning per share estimates down largely stemming from lower revenue estimates. We reiterate ‘Sell’ on Mphasis with a target price of Rs 1,825, based on 16 times FY26E EPS (as we roll forward valuation by three months). 16 times is at a 20% discount to our sector benchmark – Tata Consultancy Services Ltd. The reason for continuing discount is because of its client and vertical concentration, as well as its low return on invested capital relative to TCS..Click on the attachment to read the full report:.Mphasis Q3 Results Review - Mortgage Business Volatility, Deal Pushouts To Weigh On FY25: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mphasis Q3 Results Review - Banking, Financial Services Picture Is Still Murky: Nirmal Bang

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