MphasiS net profits rise 18%

MphasiS, the information technology and business process outsourcing (BPO) services provider, has posted an 18.3 per cent growth in net profit to Rs 271.2 crore ($58.5 mn) in the third quarter ended July 31, when compared with the corresponding period last year.

“We have crossed over $250 mn quarterly revenue for three quarters in a row. We are now transforming ourselves in preparation for the next lap of growth,” said Ganesh Ayyar, CEO.


Proservartner Point of View: Former EDS (and now HP) subsidiary Mphasis won a range of clients passed on from HP, and saw major growth in manufacturing, healthcare and banking, financial services and insurance (BSFI). It makes little strategic sense for HP to progress a BPO offering, but at the same time pass on clients and grow a BPO capability in Mphasis.
There are three sustainable options available to HP and we expect HP to take one of these options in the next 18 months: Option 1) sell HP BPO capability, Option 2) sell shareholding in Mphasis, Option 3) merge capabilities between HP and Mphasis.

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