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Mphasis eyes stellar Q4, but a spanner is in the works

Mint Ahmedabad

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January 28, 2025

Mphasis Ltd is brimming with confidence. The tier-two IT services firm is eyeing its best sequential growth in 12 quarters in January-March (Q4FY25). This optimism is driven by improved revenue conversion and robust deal wins, with the management expecting FY25 growth to surpass industry average.

- Harsha Jethmalani

In the December quarter (Q3), the total contract value of new deal wins surged to a six-quarter high of $351 million. It bagged five large deals in Q3, bringing the total large deal wins in 9MFY25 to 11. It also won a multi-year large deal of $100 million in January with a new banking and financial services (BFS) client—the deal will be executed over 2025.

Mphasis retained its FY25 earnings before interest and tax (Ebit) margin guidance at 14.6-16%. In Q3, this shrunk 10 basis points to 15.3%.

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