Mphasis records consistent and highest YoY growth of 40.7% in Direct business

Gross revenue grew 29.6% YoY in Q4 2022

NEW YORK, April 29, 2022 /PRNewswire/ -- Mphasis Limited (BSE - 526299; NSE - MPHASIS), an Information Technology (IT) solutions provider specializing in cloud and cognitive services, today announced its financial results for the quarter ended 31^st March 2022 and financial year 2021-22.

Quarter ended 31^st March 2022

• Gross Revenue grew 4.8% QoQ and 29.6% YoY on reported basis to INR 32.4 billion (USD 431 million) in Q4 FY22 and grew 4.3% QoQ and 26.8% YoY in Constant Currency.
• Direct revenue grew 5.2% QoQ and 40.7% YoY on a reported basis to INR 30.2 billion (USD 401 million) in Q4 FY22 and grew 4.7% QoQ and 37.6% YoY in Constant Currency.
• New TCV wins of USD 347 million in Q4 FY22 in Direct.
• Net profit grew 9.6% QoQ and 23.7% YoY in Q4 FY22. Adjusted for the M&A charges Net profit grew 9.1% QoQ and 30.9% YoY.

Year ended 31^st March 2022

• FY22 revenue grew 22.4% YoY on reported basis and 21.2% in Constant Currency to INR 118.6 billion (USD 1.59 billion).
• Direct revenue grew 35.7% YoY on reported basis and 34.4% in Constant Currency to INR 108.9 billion (USD 1.46 billion).
• New TCV wins of USD 1.43 billion in FY22 in Direct; Growth of 28.5%.
• Net profit grew 17.6% in FY22. Adjusted for the M&A charges, Net profit grew 22.6%

"We have had a fourth straight strong quarter of 30%+ Direct growth in FY22.  We continue to stay optimistic on the current demand environment, while we are keeping an eye on macro and geopolitical headwinds. Consistent and broad-based growth continue to be our mantra, as we prioritize growth and stability." said Nitin Rakesh, Chief Executive Officer, and Managing Director, Mphasis

Deal wins:

• Mphasis won a deal from one of the leading insurance brokers in the UK, to accelerate cloud adoption for their IT operations and migrate current entities to cloud environment
• One of the leading providers of benefits administration and cloud-based HR and finance solutions partnered with Mphasis to extend infrastructure support, service desk support and desk side support services for one of its recent acquisitions.
• NewCo in asset management business chose Mphasis as a strategic partner for a three-year managed services engagement. This comes after a prior engagement to design and deploy end-to-end digital workplace solution comprising of end user computing, network, and security for global users.

Recognitions and Analyst Positioning:

• Mphasis ranked 2nd in HFS Market Analysis: Application Modernization Services Formidable Challengers
• Mphasis positioned as a Leader in ISG's Mainframe Modernization Solutions and Services 2022 Provider Lens™ Report
• Recognized as Top Leader & Star Performer and Ranked 14 in the ITS Top 20 list, in Everest Peak Matrix® IT Service Provider of the Year™ 2022
• Recognized as Star Performer & Major Contender in Everest Group's:
• Digital Interactive Experience (IX) Services PEAK Matrix® Assessment 2022
• Artificial Intelligence (AI) Services PEAK Matrix® Assessment 2022
• Recognized as Major Contender in Everest Group's:
• Digital Experience Platforms (DXP) in Insurance Industry Products PEAK Matrix® Assessment 2022
• Healthcare Payer Operations PEAK Matrix® Assessment 2022
• Mortgage Operations PEAK Matrix® Assessment 2022
• Digital Product Engineering Services PEAK Matrix® Assessment 2022
• Intelligent Process Automation (IPA) Solutions PEAK Matrix® Assessment 2022

About Mphasis             

Mphasis' purpose is to be the "Driver in Driverless Car" for Global Enterprises by applying next-generation design, architecture, and engineering services, to deliver scalable and sustainable software and technology solutions. Customer centricity is foundational to Mphasis, and is reflected in the Mphasis'Front2Back™ Transformation approach. Front2Back™ uses the exponential power of cloud and cognitive to provide hyper-personalized (C=X2C2^TM=1) digital experience to clients and their end customers. Mphasis' Service Transformation approach helps 'shrink the core' through the application of digital technologies across legacy environments within an enterprise, enabling businesses to stay ahead in a changing world. Mphasis' core reference architectures and tools, speed and innovation with domain expertise and specialization, combined with an integrated sustainability and purpose-led approach across its operations and solutions are key to building strong relationships with marquee clients. Click hereto know more. (BSE: 526299; NSE: MPHASIS)

Safe Harbor:

Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements (the "Forward Statements") and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could cause actual results to differ materially from those in such Forward Statements. The risks and uncertainties relating to these Forward Statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, fluctuations in foreign exchange rates, revenue and profits, our ability to generate and manage growth, intense competition in IT services,  wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price and fixed-time frame contracts, restrictions on immigration, industry segment concentration, our ability to manage our international operations, our revenues being highly   dependent on clients in the United States of America, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of fiscal governmental incentives, political instability,  adverse impact of global pandemics (including COVID-19 impact), war, legal restrictions on raising capital or acquiring companies, unauthorized use of our intellectual property(ies) and general economic conditions affecting our businesses and industry. We may, from time to time, make additional written and oral Forward Statements. We do not undertake to update any Forward Statements that may be made from time to time by us or on our behalf, unless required under the law.

SOURCE Mphasis