Mphasis Q4 Results Review - Higher For Longer U.S. Interest Rates Raises Risks: 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 Q4 FY24 revenue grew QoQ in constant currency term by 2.1% but was lower than our expectation of 3%. Reported margin too fell short of our expectation due to acquisition related costs. FY24 revenue came at $1.61 billion a decline of 6.5% on YoY CC terms. While no numerical guidance was given for FY25, the management says that FY25 is going to be a growth year and that it would deliver a slightly higher than industry growth which it thinks will be in mid-single digits. It stated that the improvement in growth is not market driven but by in account action including infusion of Tech and Artificial intelligence into solutions. Both the banking, financial services (non-mortgage) and the TMT segments which drove growth in Q4 FY24 QoQ will be drivers in H1 FY25 too. The mortgage related business, which had seen significant pressure in FY23, is expected to be stable..It provided an Ebit margin (reported) guidance for FY25 of 14.6% to 16%. Adjusted for acquisition related costs, this would be 15.7%-17.1%.It spoke of a return of short cycle projects which may be a precursor of return of discretionary spending (according to it). This commentary is quite different from what we have been hearing from other companies that have reported thus far in Q4 FY24. It indicated visibility on QoQ growth in H1 FY25..Click on the attachment to read the full report:.CSB Bank Q4 Review - Closes Year With Somewhat Slower Growth But Long-Term Thesis Intact: Yes Securities.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 Q4 Results Review - Higher For Longer U.S. Interest Rates Raises Risks: Nirmal Bang

We reiterate ‘Sell’ on Mphasis with a target price of Rs 2,053, based on 19 times FY26E earning per share.

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