Shares of Mphasis surged by as much as 4.44% to reach an intraday high of ₹3,039.95 on Thursday, October 17, 2024. The uptick in the share price followed the company's impressive financial performance in the September quarter (Q2FY25), which saw profits increase by more than 8% quarter-on-quarter (Q-o-Q).
The results have sparked renewed investor interest, making it an opportune time to consider options to buy shares online.
Profits rise over 8% in Q2FY25
Mphasis reported a net profit of ₹423.3 crore in Q2FY25, up from ₹391.9 crore in the previous quarter (Q1FY25). This 8% growth in profit underlines the company's resilience amid a challenging macroeconomic environment. Investors seeking to capitalise on this momentum may consider opportunities to buy shares online, as Mphasis's strong financial performance enhances its market appeal.
Revenue growth and expanding EBIT margin
The company's revenue from operations, also known as topline, rose sequentially by 3.3% to ₹3,536.1 crore in Q2FY25, compared to ₹3,422.4 crore in Q1FY25. This growth was accompanied by a 6% increase in earnings before interest and tax (EBIT), which climbed from ₹513.5 crore in Q1FY25 to ₹544.2 crore in Q2FY25.
The EBIT margin expanded by 40 basis points to 15.4%, up from 15% in the previous quarter, demonstrating an improvement in operating efficiency. These positive metrics could encourage potential investors to buy shares online and benefit from the company's continued growth.
Total contract value and earnings per share show growth
Mphasis achieved new total contract value (TCV) wins worth $207 million in Q2FY25. Furthermore, earnings per share (EPS) climbed 4.6% sequentially and 7.7% year-on-year to ₹22.4. The company's continued success in securing new contracts and enhancing shareholder value further solidifies its position in the market. For those looking to buy shares online, Mphasis presents a compelling case with its consistent earnings growth and expanding contract portfolio.
CEO's remarks on navigating challenges and AI adoption
Nitin Rakesh, CEO and Managing Director of Mphasis, noted, "Despite many ongoing challenges, the macro environment continues to trend in the right direction. We are witnessing increased AI adoption across clients to address enterprise challenges with higher efficiency and accuracy beyond cost advantage. Savings-led transformation thesis is core to all our deal archetypes and solutions, thus significantly enhancing service delivery and savings for clients."
His remarks suggest that Mphasis is well-positioned to leverage AI-driven solutions, making it an attractive option for those looking to buy shares online.
Company overview and market presence
Mphasis Limited is a multinational information technology services and consulting firm headquartered in Bengaluru. The company offers a variety of services, including infrastructure technology and application outsourcing, architecture guidance, application development, integration, and management services. With a market capitalisation of ₹57,746.62 crore, Mphasis is a major player in the BSE200 category.
Market reaction and future outlook
At 10:53 AM on October 17, 2024, Mphasis shares were trading at ₹3,051.75, reflecting a 4.85% increase for the day. In contrast, the BSE Sensex was down by 0.32% at 81,243.94 levels, indicating that Mphasis outperformed the broader market. Given the company's recent financial results and growth prospects, buying shares online could be a strategic move for investors aiming to diversify their portfolios with a strong IT sector stock.
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