Mphasis Reports Negative Performance in Q4, Interest Ratio at Lowest in 5 Quarters

Mphasis, a largecap IT software company, recently declared its financial results for the quarter ending December 2023. According to the data released on February 1, 2024, the company has seen a very negative performance in this quarter, with a score of -22 compared to -8 in the previous quarter.

One of the major concerns for Mphasis is its operating profit to interest ratio, which has been consistently falling in the last five quarters and is currently at its lowest at 11.37 times. This indicates a deteriorating ability to manage interest payments. The company's interest cost has also increased by 55.23% quarter on quarter, which suggests increased borrowings.

The profit before tax less other income (PBT) for this quarter is at its lowest at Rs 444.36 crore and has fallen in each of the last five quarters. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) has also seen a decline in the last five quarters, with the current quarter's PAT at its lowest at Rs 373.60 crore.

The company's earnings per share (EPS) for this quarter is also at its lowest at Rs 19.79, indicating a decline in profitability and lower earnings for shareholders. Additionally, Mphasis has seen a significant increase in its non-operating income, which may not be sustainable in the long run.

Based on these financial results, MarketsMOJO has given a 'Hold' call for Mphasis' stock. It is important for investors to carefully analyze the company's financial performance and future prospects before making any investment decisions.