The group recorded consolidated revenues of Rs. 3133.5mn for FY02
as compared to Rs. 2733.4mn for FY00, an increase of 14.6%. As against
this the consolidated profits have grown by 201.2% from Rs. 136.1mn
to Rs. 409.9mn during the same period. Th Gross Profits on the other
hand have grown by a mere 23.8% from Rs. 958mn to Rs. 1186.3mn.
For FY02 contribution by MphasiS towards total
revenues, Gross profit, and Net profit have declined from 98% to
92.5%, 100.7% to 95.1%, and 131.9% to 111.2% respectively. As compared
to this contribution by MphasiS BPO has increased by 5.6%, 5.6%,
and 20.7% respectively during the same period.
For FY02 the GPM and NPM of MphasiS have increased
by 2.9% and 9% respectively. At the same time the margins for MphasiS
BPO have also improved from –12.2% to 25% and from –84.1% to –19.6%
sequential basis, revenues for the Q402 have increased by 4.5%,
but on a Y-o-Y basis they have fallen by 0.6%. Similarly Net profits
for Q402 have increased by 2.7%sequentially and by 79.2% on a Y-o-Y
on a segregated basis, the movement of Revenues and Net profit has
been as follows:
The change in revenue mix clearly depicts that
the contribution from MphasiS BPO is rising steadily.
FY02, the company has initiated 2 more software development centres
and a call centre.
MphasiS has added eleven new clients of which two
have been under the MphasiS BPO group. This raises the client base
for MphasiS BPO to 12, with manpower deployment of approximately
Utilization rates for MphasiS for Q402 was at 74%
and for MphasiS BPO was at 76%. However, this indicates that the
utilization rate has remained almost flat for MphasiS.
client additions have been in the verticals of finance, insurance,
and consultancy. To give a profile of a few of them, these are a
large bank in the Middle East, a large international insurance organisation,
a leading management consulting firm in the South - East Asia, a
large project for web-enablement for a leading software company,
as well as establishing new relationships with an existing multinational
banking client in USA, Israel and Korea.
has had a heavy client concentration. This makes the company sensitive
to the revenue contribution from these few clients. However, this
seems to be correcting as this reliance has been reducing.
price of Rs.607 the stock is currently trading at a PE of 23.5x
and has an EPS of Rs. 25.8. The company has given an earnings guidance
of 25% growth in the sales and a 70% growth in the profits on a
consolidated basis. With the onslaught of the call centre opportunities
coming up, and the earnings guidance given the stock seems to be