MphasiS BFL Q1 net up 40%
By The increase in software | 10 Jul 2003
Bangalore: The Mphasis BFL group's (www.mphasis.com) consolidated net profit increased to Rs 19.49 crore for the quarter ended 30 June 2003, compared to a net profit of Rs 13.89 crore in the quarter ended 30 June 2002, representing an increase of 40.3 per cent. The net profit for the current quarter also represents an increase of 4.1 per cent over the Rs 18.72 crore posted in the previous sequential quarter ended 31 March 2003. Revenues at Rs 130.22 crore in the current quarter have increased by 45 per cent over the same quarter last year. On a sequential quarter-on-quarter basis revenues have grown by 7.7 per cent.
Says Mphasis BFL chairman and managing director Jerry Rao: "We have had a good quarter across the group with healthy growth in revenues and profits. Software margins have reduced as anticipated due to an increase in salaries, addition of people due to anticipated growth and an appreciation of the Indian rupee. MsourcE continues to ramp up rapidly and is on a sustained growth track which places it on course for improved margins in the coming quarters."
The increase in software profits over last year is due to a 24-per cent increase in revenues and a reduction in selling, general and administrative expenses. There were 164 people added in the current quarter in the software services business.
During the quarter, the group added 12 new clients including two in MsourcE, the group call centre subsidiary. These include a multinational insurance group, a large US-based retail organisation, a bank based in the Middle East and a large Indian financial institution. Five of the clients added are in the financial services vertical.
Software manpower utilisation rates in the quarter were marginally lower compared with the quarter ended 31 March 2003 at 75 per cent. However, volumes in terms of billed hours increased by 8 per cent in sequential quarters. Total cash balances as at 30 June 2003 amounted to Rs 78 crore.
MsourcE recorded revenues of Rs 37.65 crore in the quarter ended 30 June 2003, as against Rs 14.58 crore in the corresponding quarter of the previous year, representing a growth in revenues of 158 per cent. On a sequential quarter-on-quarter basis this represents a revenue growth of 23.4 per cent.
Losses in MsourcE have reduced from Rs 2.98 crore to Rs 0.75 crore this quarter despite the continued rapid scaling up of operations which is reflected in an increase of 533 people in the quarter ended 30 June 2003. The total staff strength of MsourcE of 3,120 at 30 June 2003, together with an active client base of 19 means that the business is on track for another year of rapid revenue growth and increasing profitability.
The MphasiS group is a leading provider of software and system integration technology and IT-enabled services for consumer-focused corporations. The company currently has 4,000-plus employees spread across 17 offices and nine development centres worldwide. MphasiS clients include blue chip companies such as ABN Amro, JPMorganChase, Citigroup, Charles Schwab, Hewlett Packard and FedEx.