Mphasis’ Q3 profit-after-tax jumps 10.2%

Mphasis’ Q3 profit-after-tax jumps 10.2%Information technology & business process outsourcing (BPO) firm Mphasis has reported an impressive increase in profit for the quarter ended June 30, 2012.

For the three months through June, Mphasis posted an increase of 10.2 per cent in profit after tax to Rs 208.7 crore. The third quarter EBITDA jumped to Rs 267.5 crore, up 2.4 per cent from the corresponding period of previous year.

EBIT (earnings before interest & tax) margin climbed 50 basis points to 16.7 per cent, in spite of wage increments and promotions given to employees during the quarter.

The company's net sales climbed 2 per cent to settle at Rs 1,355 crore during the same period.

MphasiS is owned by US-based computer giant HP. The poor performance in the parent's company's services business has been hurting Mphasis also. Mphasis is therefore trying to increase its direct clients.

The company's chief executive officer, Ganesh Ayyar, said that the company's focus on making direct clients was yielding results.

Commenting on third quarter results, Mr. Ayyar said, "Sustained focus on building our direct business is yielding results."

Following the announcement of third quarter results, stock in MphasiS jumped 0.3 per cent to close at Rs 368.15 a share on NSE on Wednesday.