The Q2 result was announced after market hours on Wednesday, 29 May 2013.
Meanwhile, the S&P BSE Sensex was down 16.52 points or 0.08% at 20,131.12.
On BSE, 72,000 shares were traded in the counter as against aaverage daily volume of 16,356 shares in the past one quarter.
The stock hit a high of Rs 485.45 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 441 so far during the day. The stock had hit a 52-week low of Rs 317 on 5 May 2012.
The stock had outperformed the market over the past one month till 29 May 2013, surging 19.55% compared with the Sensex's 3.92% rise. The scrip had also outperformed the market in past one quarter, jumping 19.6% as against Sensex's 6.82% gain.
The IT firm has equity capital of Rs 210.14 crore. Face value per share is Rs 10.
MphasiS said that the net profit in Q2 April 2013 was lower, both on QoQ and YoY basis, on account of lower other income during the quarter as the company deployed funds towards the acquisition of Digital Risk as well as towards the payment of dividend. Further, effective tax rates increased to 25.1% due to higher tax rates applicable on Digital Risk profits, increase in tax surcharge in India and expiry of the initial five-year tax holiday in some of the company's delivery centers located in Special Economic Zones, MphasiS said in a statement.
MphasiS' consolidated operating margins for the quarter stood at 14.7%, down from 15.5% in Q1 January 2013 on account of the integration of lower margin Digital Risk.
Cash generated from operations during the quarter was Rs 264 crore. Cash and cash equivalents reduced by Rs 770 crore during the quarter to reach Rs 2340 crore as on 30 April 2013 as funds were deployed towards the acquisition of Digital Risk and payment of dividend, MphasiS said in a statement.
MphasiS' Direct channel revenues (including Digital Risk) grew by 24.8% QoQ and 37.7% YoY to Rs 775 crore in Q2 April 2013. The Direct channel contribution has now crossed 50% of total revenues, the company said. Direct versus HP business mix is at 54:46 in Q2 April 2013 as compared to 48:52 in Q1 January 2013. Direct channel revenues now represent an annual run rate of $572 million. The Direct business saw a healthy addition of 10 new logos out of which 6 were in the company's focus verticals of Banking and Capital Market (4 additions), and Insurance (2 additions). The total client additions for the quarter stood at 21.
MphasiS said that the acquisition of Digital Risk LLC was completed on 11 February 2013 and continues to show strong growth momentum. In addition, in the current quarter (Q3 July 2013), Digital Risk has secured its first major win post acquisition closure, signing a $60 million plus TCV contract with a BFSI customer. This contract represents the largest contract ever secured in Digital Risk's history, MphasiS said in a statement.
Ganesh Ayyar, Chief Executive Officer, MphasiS said, "We are witnessing good traction in the Direct business in the US with a growing pipeline testimony to our hyper-specialization approach. The acquisition of Digital Risk has gone well; we have won a large $60 million TCV contract from a BFSI client with potential upside of $40 million based on further volume. We are enthused by growth prospects going forward".
MphasiS is $1 billion global service provider, delivering technology based solutions to clients across the world.
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