Mphasis (526299) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached $411 million (₹34,224.62 million), up 3.1% YoY in constant currency, with direct business accounting for 96% of revenue and strong growth in AI-powered deals.

• TCV wins totaled $390 million, with 84% from next-gen/AI-led services; three large deals closed, including one over $100 million.

• Net profit for Q1 FY25 was ₹4,045 million, with EPS at ₹21.4, up 2.8% sequentially and 1.8% YoY.

• AI and GenAI are central to strategy, with new platforms NeoZeta and NeoCrux launched to drive modernization and productivity.

• Multiple industry awards and recognitions, including NASSCOM AI Gamechangers, ESG upgrades, and major analyst accolades.

Financial highlights

• Gross revenue for Q1 FY25 was $411 million, up 3.1% YoY and 0.2% QoQ in constant currency; direct revenue up 0.6% QoQ and 5.6% YoY on reported basis.

• EPS for the quarter was ₹21.4, up 2.8% sequentially and 1.8% YoY; net profit at ₹4,045 million.

• Cash flow generation was $53 million, about 10% of net income, with operating cash flow to PAT ratio above 100%.

• Standalone revenue for Q1 FY25 was ₹23,181.89 million, with standalone profit after tax at ₹4,146.95 million.

• Basic EPS (consolidated) for the quarter was ₹21.40, compared to ₹20.82 in Q1 FY24 and ₹21.01 in Q4 FY24.

Outlook and guidance

• Expect above-industry growth for FY25, driven by tech-led account focus, strong pipeline, and AI-led platforms.

• EBIT margin guidance remains at 14.6%-16%, with continued investment for growth and productivity.

• Anticipate sequential growth in healthcare and continued recovery in BFS and mortgage segments.

• Board approved a final dividend of ₹55 per equity share for FY24.