Publication : www.moneycontrol.com
June 16, 2001

MphasiS BFL has performed well in the last fiscal, bringing the company back on track, reports CNBC India. The stock was in the news after Chrysalis Capital signed a $10 million deal to pick up a 7-8% stake in MphasiS BFL.

The deal was struck at Rs. 350 a share.

Speaking on venture capitalist investment in a listed stock, Alroy Lobo of Kotak Securities told CNBC India that in such cases it was typical of a VC to look at the company's performance in the longer term. MphasiS' client profile suggests good opportunities in the longer term, keeping in mind the relationships being built by the company with its clients. This, he said, is valuable from the point of view of the investor.

Sanjay Dutt of Quantum Securities said that given the stable business that was coming MphasiS' way, it is a profitable investment. However, he added that the company's stock might witness a slight weakness due to the revenue warning issued by it.

MphasiS issued a revenue warning regarding its target of $100 million on Friday. MphasiS said it might now earn revenues of $80-85 million.

The scaling down was based on the Q1 performance. MphasiS is however hopeful of maintaining the gross margins despite lower revenue numbers.