Buy Mphasis Ltd : Muted 3Q performance but better deal wins - Motilal Oswal Financial Services
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Muted 3Q performance but better deal wins
3QFY23 CC revenue declined 2.5% QoQ, INR EBIT grew 14% YoY, and INR PAT grew 15% YoY
Revenue highlights
* Revenue of USD429m declined 2.5% QoQ CC USD, missing our estimate of 0.4% growth.
* Direct revenue declined 2.8% QoQ CC; DXC revenue grew by 0.8% QoQ CC.
* Americas declined 2.9% sequentially. BFS fell 3.5% QoQ, with Insurance/Tech down 3.2%/2.4%.
Margin highlights
* EBIT margin at 15.3% was below our estimate of 15.5%.
* PAT was down 1.5% QoQ at INR4.12b vs our estimate of INR4.46b.
Other Highlights
* Deal TCV of USD401m was up 33% QoQ and 20% YoY.
* Utilization (excl. trainees) rose 200bp to 74%. Headcount fell 1.4k in 3Q.
Valuation and view: We would revisit our estimates post the earnings call. We await further clarity on the near-term outlook, DXC channel, and margins. Maintain Buy.
To Read Complete Report & Disclaimer Click Here
For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412
Above views are of the author and not of the website kindly read disclaimer
