Mphasis Q2 revenue up 5.7 percent to Rs 1,329 crore

Mphasis, one of the leading IT   services companies, has reported 5.7 percent increase in the consolidated revenues for the second quarter to Rs 1,329 crore.

Operating profits increased sequentially to Rs  216 crore.

The net profit of the quarter sequentially increased 2.5 percent to Rs 189 crore.

The focus on productivity, quality and cost of revenues has led to company’s overall improvement in profitability.

Direct business revenues grew 35.5 percent on a y-o-y basis, while facing decline of 3.2 percent sequentially to Rs 563 crore.

Direct channel contributed to 42 percent of the total revenues in Q2 FY12, continuing the momentum of lightening the single client concentration risk.

“Our profit improvement is the key feature of the Quarter. Combination of cost

optimization and improved quality of revenue were the key drivers resulting in improved profitability. Our hyper-specialization journey continues and that is generating higher quality pipeline,” said Ganesh Ayyar, chief executive officer, MphasiS.

Cash and cash equivalents increased by Rs 157 crore during the quarter to Rs 2,339 crore.