Business Update *
- Direct organic business revenues in mature markets recorded a sequential growth of 2.5% in Q2 FY15 or 1.3% net of rupee depreciation
- New deal wins of US$ 65 million TCV in Q2 FY15; Deal wins of US$ 110 M TCV in H1 FY15, provides good revenue visibility going forward
- Direct business stood at 64% of consolidated net revenues in Q2 FY15.
Financial Update *
- Consolidated net revenues declined 1.7% QoQ or 2.5% net of rupee appreciation
- Direct channel revenue declined by 2.1% QoQ or 3.3% net of rupee depreciation, impacted by slowdown in the US mortgage industry and one-time revenue reversals in India Government business
- Operating margins stood at 13% impacted by certain one-time revenue reversals and sales expenditure;
- DSO improved by 2 days to 72 days at the end of Q2 FY15 with net operating cash generation of Rs 1,947 million during the quarter.
Ganesh Ayyar, Chief Executive Officer of Mphasis, said, “We continue to see good traction in our Direct organic business. Our focus on GRC, Digital and AMS is paying off.”
* The Company has changed its financial year from 31st October to 31st March, and in the absence of comparable proforma numbers for the corresponding quarter in the previous year, the financial results for the quarter ended 31st October 2013 have been provided for an indicative comparison.