Mphasis Reports Positive Financial Results for Q2 FY25, Net Sales and Operating Profit Reach Record Highs

Depreciation – Quarterly: At Rs 62.83 cr has increased by 4.32% over preceding quarter. Higher depreciation indicates increased investment in assets.

Mphasis, a leading IT software company, has recently announced its financial results for the quarter ended September 2024. The company has shown a positive performance with a score of 6, which is a significant improvement from the previous quarter’s score of -4.

One of the key highlights of the financial results is the increase in net sales, which has reached its highest at Rs 3,536.15 crore and has shown growth in each of the last five quarters. This indicates a very positive sales trend in the near term for the company.

Another positive aspect is the company’s operating cash flow, which has been the highest at Rs 2,179.70 crore in the last three years. This shows that the company has generated higher cash revenues from its business operations.

The operating profit (PBDIT) for the quarter has also been the highest at Rs 647.88 crore in the last five quarters, indicating a positive trend in the near term. Similarly, the profit before tax (PBT) and profit after tax (PAT) have also shown an upward trend, with the highest figures of Rs 503.82 crore and Rs 423.33 crore respectively in the last five quarters.

On the other hand, the company’s interest cost has increased by 26.27% over the preceding nine months period, which signifies increased borrowings. Additionally, the depreciation cost has also increased by 4.32% over the previous quarter, indicating higher investment in assets.

Overall, Mphasis has shown a strong financial performance in the quarter ended September 2024, with positive trends in key areas such as net sales, operating profit, and earnings per share. However, the increase in interest and depreciation costs may need to be monitored closely in the future. Based on these results, MarketsMOJO has given a ‘Hold’ call for Mphasis’ stock.