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Mphasis is a prominent Computers - Software & Consulting company, operating under the stock ticker MPHASIS. With a market capitalization of Rs. 43,664 Crores, it is recognized as a significant player in the information technology solutions sector.
The company specializes in cloud and cognitive services, catering to clients across the United States, India, Europe, the Middle East, Africa, and other international markets. Mphasis operates through various segments including:
Mphasis offers an extensive range of services, such as:
The company also provides platforms and protocols through Mphasis XaaP and offers Salesforce and consulting services.
Its client base comprises various industries, including:
Founded in 1992, Mphasis is headquartered in Bengaluru, India. Over the past 12 months, the company has reported a revenue of Rs. 14,191.2 Crores and distributes dividends to its investors, boasting a dividend yield of 1.98% per year. In the last year, it returned Rs. 55 as dividend per share.
Mphasis has seen a 1.2% dilution of its shareholders in the past three years but remains a profitable company with a reported profit of Rs. 1,648.9 Crores over the past four quarters. Additionally, it has achieved a revenue growth of 24.9% in the same period.
Valuation | |
|---|---|
| Market Cap | 47.48 kCr |
| Price/Earnings (Trailing) | 28.79 |
| Price/Sales (Trailing) | 3.35 |
| EV/EBITDA | 16.7 |
| Price/Free Cashflow | 25.79 |
| MarketCap/EBT | 21.67 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 14.19 kCr |
| Rev. Growth (Yr) | 6.84% |
| Rev. Growth (Qtr) | 0.81% |
| Earnings (TTM) | 1.65 kCr |
| Earnings Growth (Yr) | 14.51% |
| Earnings Growth (Qtr) | 1.06% |
Profitability | |
|---|---|
| Operating Margin | 15.44% |
| EBT Margin | 15.44% |
| Return on Equity | 19.02% |
| Return on Assets | 12.14% |
| Free Cashflow Yield | 3.88% |
Detailed comparison of Mphasis against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TCS | Tata Consultancy ServicesComputers - Software & Consulting | 12.46 LCr | 2.56 LCr | -5.17% | -10.49% | 25.42 | 4.86 | +5.31% | +8.82% |
| INFY | InfosysComputers - Software & Consulting | 6.15 LCr | 1.65 LCr | -7.47% | +2.89% | 22.2 | 3.72 | +5.96% | +13.44% |
| HCLTECH | HCL TechComputers - Software & Consulting | 4.2 LCr | 1.18 LCr | -3.38% | +4.92% | 24.61 | 3.57 | +7.49% | +8.85% |
| WIPRO | WiproComputers - Software & Consulting | 2.52 LCr | 92.14 kCr | -9.91% | +4.51% | 20.16 | 2.73 | -1.32% | +10.05% |
| TECHM | Tech MahindraComputers - Software & Consulting | 1.43 LCr | 53.53 kCr | +3.23% | +22.83% | 37.89 | 2.67 | -0.30% | +32.11% |
Investor Care | |
|---|---|
| Dividend Yield | 1.98% |
| Dividend/Share (TTM) | 55 |
| Shares Dilution (1Y) | 0.47% |
| Diluted EPS (TTM) | 86.49 |
Financial Health | |
|---|---|
| Current Ratio | 1.64 |
| Debt/Equity | 0.11 |
| Debt/Cashflow | 2.22 |
Summary of Mphasis's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jul 24
Management Outlook:
Mphasis anticipates steady recovery across client segments, particularly in BFS (its anchor vertical), with cautious optimism in macro conditions. Tech spending remains a strategic priority for clients, focusing on AI-driven modernization and efficiency. The company expects full-year growth above industry averages, supported by a robust pipeline (up 22% YoY, 17% QoQ) and tech-led strategies. EBIT margin is targeted within 14.6%-16%, balancing productivity and growth investments. Early signs of mortgage segment recovery are noted, though interest rate uncertainties persist.
Key Highlights:
Focus remains on client mining, Savings-Led Transformationâ„¢, and scaling AI-driven solutions for sustainable growth.
Last updated: Jul 24
Question 1:
Nitin Padmanabhan (Investec): What has been the client cost-saving experience with Gen AI across application services, people, and infra? Can Mphasis NeoZetaTM deal sizes grow large? How is NeoCruxTM sold, and how much productivity benefit is retained? Can revenue growth delink from headcount long-term?
Answer:
Gen AI drives productivity (e.g., 30% cost reduction in Agile IT Ops via ticket reduction). NeoZetaTM addresses complex modernization (50%+ unreachable legacy apps), enabling large deals by bundling Savings-Led Transformation. NeoCruxTM integrates into SDLC as a service, aiming for nonlinear revenue via platform adoption. Delinking headcount depends on shift to outcome-based pricing (e.g., availability vs. per-ticket).
Question 2:
Sudheer Guntupalli (Kotak): Q1 Direct growth was muted despite peers' BFS strength. Is this a blip or renewed headwind?
Answer:
Q1 Direct growth (0.3% QoQ) faced project completions in Healthcare. Pipeline metrics (22% YoY growth, 78% proactive) and BFS recovery (1.1% QoQ growth) signal steady recovery. Top 10 accounts grew 1.2% QoQ. Traction in mortgage (early volume uptick) and TCV conversion improvement support above-industry FY25 growth.
Question 3:
Nitin Jain (Fairview): Q1 growth lagged industry; how will FY25 achieve above-industry guidance?
Answer:
Full-year guidance factors pipeline strength (TCV $319M in Q1, +17% QoQ) and consumption of FY24's $1.4B TCV. Sequential stability in verticals (BFS, Insurance) and geographies (U.S./EMEA growth) supports gradual recovery. Margin (15%) stays within 14.6%-16% band via productivity, with upside from revenue acceleration.
Question 4:
Sandeep Shah (Equirus): Will FY24 TCV drive H2 growth? Margin outlook amid wage hikes?
Answer:
FY24 TCV ($1.4B) continues ramping. Margin (15%) remains stable via operating leverage; wage hikes offset by utilization (84-85%) and pricing. No one-offs in Q1; Silverline acquisition costs (0.8% impact) normalize over time.
Question 5:
Dipesh Mehta (Emkay): AI productivity gains? Mortgage recovery details? New-gen deal confidence?
Answer:
AI productivity varies: Agile IT Ops (30-50% cost reduction), modernization (50%+ relearn time savings). Mortgage shows early volume uptick (rate cuts pending). New-gen deals (84% of TCV) align with pipeline diversification (non-BFS +25% QoQ). BFS pipeline (+7% QoQ) supports growth.
Question 6:
Mohit Jain (Anand Rathi): Utilization up but margins flat"”why? FY25 TCV trend?
Answer:
Margins (15%) absorbed Silverline costs; underlying improvement (ex-acquisition: 15.8%). Utilization gains offset wage hikes. TCV outlook hinges on pipeline health (large deals, non-BFS strength).
Question 7:
Manik Taneja (Axis): Healthcare decline linked to BPS? Onsite mix rise?
Answer:
Healthcare decline (-8% QoQ) tied to seasonal project completions (Q4 enrollment). Onsite mix reflects Savings-Led Transformation deals (design-heavy); profitability, not mix, is focus.
Question 8:
Girish Pai (BOB): IT spend trend? GCC threat?
Answer:
Global IT spend growth (~2.5%) drives share gains via modernization/AI solutions. GCCs coexist via hybrid models; differentiation beyond offshoring (e.g., platforms) mitigates risk.
Question 9:
Ashwin Mehta (Ambit): Depreciation drop? Hiring plans?
Answer:
Depreciation normalized post-amortization adjustments. Hiring aligns with demand (offshore pyramid stable); utilization (84%) allows growth without immediate hiring.
Question 10:
Nitin Padmanabhan (Investec): Healthcare headwinds?
Answer:
Healthcare pipeline (new deals, platform focus) offsets Q1 dip. No major project risks ahead; growth resumes via platform-led deals.
Analysis of Mphasis's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Banking and Financial Services | 48.7% | 1.7 kCr |
| Technology Media and Telecom | 17.0% | 603 Cr |
| Logistics and Transportation | 12.2% | 433.7 Cr |
| Insurance | 11.7% | 415.3 Cr |
| Others | 10.5% | 374 Cr |
| Total | 3.6 kCr |
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
Profitability: Recent profitability of 12% is a good sign.
Insider Trading: There's significant insider buying recently.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Size: Market Cap wise it is among the top 20% companies of india.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
MPHASIS metrics compared to IT
| Category | MPHASIS | IT |
|---|---|---|
| PE | 29.01 | 25.53 |
| PS | 3.37 | 3.95 |
| Growth | 5.7 % | 4.3 % |
MPHASIS vs IT (2021 - 2025)
Understand Mphasis ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| BCP TOPCO IX PTE. LTD | 40.14% |
| KOTAK EMERGING EQUITY SCHEME (including other Kotak mutual funds consolidated based on PAN) | 7.19% |
| LIFE INSURANCE CORPORATION OF INDIA (including other LIC funds consolidated based on PAN) | 6.54% |
| HDFC MUTUAL FUND - HDFC MID-CAP OPPORTUNITIES FUND (incl. other HDFC MF consolidated based on PAN) | 3.25% |
| MIRAE ASSET EMERGING BLUECHIP FUND (including other Mirae mutual funds consolidated based on PAN) | 2.37% |
| ICICI PRUDENTIAL MUTUAL FUND (incl. other ICICI Prudential mutual funds consolidated based on PAN) | 1.28% |
| HDFC LIFE INSURANCE COMPANY LIMITED (including other HDFC funds consolidated based on PAN) | 1.28% |
| UTI Value fund (including other UTI mutual funds consolidated based on PAN) | 1.06% |
Distribution across major stakeholders
Distribution across major institutional holders