MphasiS announced a strong Q3FY10 led by volume growth of 7.3%QoQ and 12.4%QoQ in the application and ITO segment respectively.

MphasiS reported Q3FY10 with USD revenue growth of 1.8%QoQ.

Revenues increased by 4.8%QoQ to Rs 1279 million on account of sturdy volume and pricing growth in the ITO sector.

EBIDTA margins declined 112bps to 24.7% on account of higher salary expenditures, lower pricing in the application segment.

PAT zoomed 1.5%QoQ to Rs 2712 million owing to lower tax rates.

For the quarter under review, Mphasis announced an EPS of 12.8 (PINCe of Rs 11.5).

ITO section outperformed once again and gained 33.8%QoQ to Rs 2913 million backed by sturdy volume, pricing growth and acquirement of Fortify services.

Income from APO decline by 1.7%QoQ because of volume increase of 7.3%QoQ and a decline in the billing rate by 13%QoQ. BPO remained flat and is likely to announce positive revenue growth in the near term.

US grew 14.7%QoQ, Europe and APAC declined 8.5%QoQ and 5.1%QoQ respectively. BFSI vertical grew 14.7%QoQ whereas telecom declined 34.6%QoQ due to a temporary ramp down from one of its clients.

The billing rates are likely to remain steady at current levels across the sections for the upcoming quarter.

MphasiS has 2000 and 700 open positions in the applications and ITO section respectively.

The company is striving to attain higher growth from non HP channel that presently makes around 28% of the total income.