MphasiS is trading lower by 1.5% at Rs 395 in early morning deals on the BSE after reporting a 1.25% quarter-on-quarter (qoq) decline in net profit at Rs 190.22 crore for the quarter ended October 31, 2013 (Q4) due to lower revenue growth. The IT consulting and software firm had profit of Rs 192.64 crore in previous quarter.
The company’s revenue grew 3.5% at Rs 1,594 crore on qoq basis. In dollar terms revenues declined by around 4.5% qoq to US$252 million. Revenues from direct channel grew by just 0.6% on a sequential basis. The growth from direct channel was impacted negatively because the company exited from loss making government contracts in India.
“EBITDA margin of the company declined by around 70bp qoq to 17.5%, which was key negative surprise in the result. Operating margin contracted due to around 6% qoq rise in S&M spends,” says an analyst with Angel Broking in a note.
The company’s revenue grew 3.5% at Rs 1,594 crore on qoq basis. In dollar terms revenues declined by around 4.5% qoq to US$252 million. Revenues from direct channel grew by just 0.6% on a sequential basis. The growth from direct channel was impacted negatively because the company exited from loss making government contracts in India.
“EBITDA margin of the company declined by around 70bp qoq to 17.5%, which was key negative surprise in the result. Operating margin contracted due to around 6% qoq rise in S&M spends,” says an analyst with Angel Broking in a note.