MPHASIS Announces Quarterly Results (4QFY20); Net Profit Up 32.7%

Fri, 15 May

MPHASIS has announced its results for the quarter ended March 2020. Here is a detailed performance review of the same:

MPHASIS Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-19*	3 Dec-19*	3 Mar-20*	QoQ Change	YoY Change
Net Sales	Rs m	20,250	22,767	23,462	3.0%	15.9%
Other income	Rs m	332	362	525	45.2%	58.1%
Turnover	Rs m	20,582	23,129	23,987	3.7%	16.5%
Expenses	Rs m	16,846	18,498	19,021	2.8%	12.9%
Gross profit	Rs m	3,403	4,269	4,440	4.0%	30.5%
Depreciation	Rs m	200	576	609	5.7%	205.0%
Interest	Rs m	59	190	207	8.6%	249.1%
Profit before tax	Rs m	3,477	3,865	4,150	7.4%	19.4%
Tax	Rs m	815	929	618	-33.5%	-24.2%
Profit after tax	Rs m	2,661	2,936	3,532	20.3%	32.7%
Gross profit margin	%	16.8	18.8	18.9
Effective tax rate	%	23.5	24.0	14.9
Net profit margin	%	12.9	12.7	14.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 15.9% on a year-on-year (YoY) basis. The expenses were up by 12.9% YoY during the same period.
• The company's operating profit increased by 30.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.9% in 4QFY20 as against 16.8% in 4QFY19.
• Depreciation charges increased by 205.0% and finance costs increased by 249.1% YoY, respectively.
• Other income increased by 58.1% YoY during the quarter.
• Net profit for the quarter increased by 32.7% YoY. Net profit margins during the quarter increased from 12.9% in 4QFY19 to 14.7% in 4QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 3.0% on a quarter-on-quarter (QoQ) basis. The expenses were up by 2.8% QoQ during the same period.
• The company's operating profit increased by 4.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.9% in 4QFY20 as against 18.8% in 3QFY19.
• Net profit for the quarter increased by 20.3% QoQ, while net profit margins increased from 12.7% in 3QFY19 to 14.7% in 4QFY20.

To see how MPHASIS has performed over the last eight quarters,please visit here.

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MPHASIS Share Price Performance

Over the last one year,MPHASIS share price has moved down from Rs 958.6 to Rs 822.6, registering a Loss of Rs 136.1 or around 14.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 13,271.9 (down 1.0%). Over the last one year it has moved down from 15,347.1 to 13,271.9, a gain of 2,075 points (down 13.5%).

Overall, the S&P BSE SENSEX is down 17.0% over the year.

Current Valuations

At the current price of Rs 822.6, the price to earnings (P/E) ratio of MPHASIS stands at 14.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.3 times.