India's Mphasis Beats Profit Estimates on Banking Segment Deals

Mphasis Limited, a leading Indian IT services provider, has reported a strong set of results for the third quarter ended December 31, 2024, driven by robust performance in its banking and financial services (BFS) segment. The company's consolidated net profit grew nearly 15% to ₹4.28 billion (₹49.54 million) for the quarter, surpassing analysts' expectations (Source: Reuters, 2025).

Mphasis' BFS segment, which accounts for nearly half of the company's overall revenue, witnessed an almost 9% revenue growth during the quarter. This growth was driven by higher customer spending and a gradual recovery in the mortgage business. The segment's strong performance contributed to the company's total contract value (TCV) growing by 46% to $351 million during the quarter (Source: Reuters, 2025).

The company's total pipeline has increased by 23% year-on-year and has risen in the single digits quarter-on-quarter. In the first half of the fiscal year 2024, Mphasis secured six large contracts and expects deal to revenue conversion to improve moving forward. The company's top client grew by 8.6% quarter-on-quarter, while its top five clients declined by 0.9%, indicating a diversified client base (Source: "Mphasis Shares surge nearly 4% on strong Q2 results").

Mphasis' technology, media, and telecom (TMT) segment revenue grew near 13% during the quarter, driven by continued order wins. The company's total revenue of ₹35.61 billion (₹35.70 billion) for the quarter was about 7% higher than last year, but missed analysts' estimates of ₹35.70 billion (Source: "Mphasis Shares surge nearly 4% on strong Q2 results").

Mphasis' strong financial performance, including higher-than-expected revenue growth and margin expansion, further validates the positive impact of its strategy on long-term growth prospects. The company's Earnings Before Interest and Tax (EBIT) stood at ₹5.44 billion (₹544.2 crore), higher than the ₹5.13 billion (₹513.5 crore) it reported during the June quarter. The company's EBIT margin stood at 15.4%, surpassing the estimated 15.1% (Source: "Mphasis Shares surge nearly 4% on strong Q2 results").



Mphasis' focus on the banking and financial services segment, coupled with its ability to secure large contracts and expand its pipeline, has contributed to its recent growth and profitability. The company's strong performance in the BFS segment, driven by higher customer spending and a recovery in the mortgage business, has been a significant factor in its success. Mphasis' strategy of expanding its pipeline and securing large contracts has a positive impact on its long-term growth prospects, as evidenced by consistent revenue growth, a diversified client base, and a robust pipeline.

In conclusion, Mphasis' focus on the banking and financial services segment, coupled with its ability to secure large contracts and expand its pipeline, has contributed to its recent growth and profitability. The company's strong performance in the BFS segment, driven by higher customer spending and a recovery in the mortgage business, has been a significant factor in its success. Mphasis' strategy of expanding its pipeline and securing large contracts has a positive impact on its long-term growth prospects, as evidenced by consistent revenue growth, a diversified client base, and a robust pipeline.