SOURCE: MphasiS

MphasiS

November 24, 2010 10:39 ET

MphasiS Races Past $1 Billion Mark in FY 2010

Management Unveils New Strategy for Next Phase of Growth as Revenues, Net Profit and EPS All Increase

NEW YORK, NY--(Marketwire - November 24, 2010) - MphasiS, a leading IT services provider, today announced financial results for the fourth quarter and full-year ended October 31, 2010. MphasiS' consolidated revenue for the year ended October 31, 2010 was $1,099.3 million, crossing the $1 billion mark for the first time. This year's results grew 25.8% over last year's results of $874.2 million. During the year, net profit increased by 27.8% from $186.2 million to $238.1 million. The company's operating profit during the year ended October 31, 2010 was $240.3 million, a growth of 26.7% in comparison to the previous year. Operating margins for the year were 21.9% and EPS was $1.13, an increase of 27.4% in comparison to the previous year.

MphasiS' Board of Directors has recommended a 40% dividend for the year 2009-10. For the quarter ended October 31, 2010, the Group recorded revenues of $296.2 million, a growth of 25.6% compared to the corresponding period last year. During the same period, net profit increased by 22.6% from $51.0 million to $62.5 million. The Group recorded a consolidated net profit growth of 7.0% over the quarter ending July 31, 2010. Revenues for the same period grew by 7.5%.

"This has been an important year for us. Having crossed the $1 billion revenue mark, MphasiS is now part of the club of Indian IT companies who have reached this important milestone," said Ganesh Ayyar, CEO of MphasiS. "We are now preparing for our next phase of growth, with the opportunities of a large company and yet retaining the agility and customer focus of a small company. Flexibility and customer centricity have always been an MphasiS hallmark and we intend to further intensify our customer focus."

During the quarter ended October 31, 2010, MphasiS added 22 new clients, including a bank, a leading healthcare provider and clients from the manufacturing vertical. The Group also added net headcount of 5,330 during the year making the headcount 39,962 as of October 31, 2010.

Cash and bank balances including short-term investments in liquid mutual funds stood at $368.9 million as of October 31, 2010.

Key highlights of 2010

  • MphasiS acquired Fortify Infrastructure Services, a global provider of offshore based Remote IT Operations and Management (ROM) Services expanding their presence in the ROM services market. The combined entity will help the Group gain a bigger share of the ROM market. Through this acquisition, the Group will provide outcome based services which go beyond technical SLAs
  • MphasiS launched its Global Command & Control Center (GCCC) in Pune that enhances the company's Infrastructure Outsourcing capabilities. The center extends services to customers in India and key global markets including the US, Europe and Asia Pacific Japan
  • MphasiS launched a global delivery center in Sri Lanka and opened a near shore center in the University of Wollongong's innovation center, Australia
  • MphasiS opened its 245 seater BPO center in Raipur, Chhattisgarh
  • MphasiS was selected by TD AMERITRADE, a provider of securities brokerage services and technology-based financial services to support some of its non-client facing services
  • MphasiS partnered with American Postal Workers Union (APWU) to successfully implement Javelina™ -- MphasiS' web based platform for the Healthcare industry
  • Javelina™ -- MphasiS' web based platform for the Healthcare industry, successfully went operational for the company's second client, Keenan, one of the largest brokerage companies in the US

Awards

  • MphasiS was ranked 6th amongst the Top 20 IT Software and Service exporters in India (excluding BPO revenues) and 7th in the Top 20 IT-BPO employers in India by NASSCOM
  • Dataquest rated MphasiS as one of the 5 fastest growing companies among the 20 IT companies in India (2009-10)
  • Dataquest ranked MphasiS 17th in the 'DQ Top 20 IT companies' and 9th in the 'DQ Top 20 Exports'; MphasiS BPO was ranked 20th in the 'DQ Top 20 BPO' Survey
  • Businessweek ranked MphasiS 23rd in the Bloomberg Businessweek's Tech 100 list, a ranking of the world's best performing tech companies of 2009. This is the first time MphasiS made it to Businessweek's Top 100 list of technology companies
  • MphasiS was recognized for its efforts at the NDTV Profit Leadership awards for Diversity and Inclusion
  • MphasiS ranked 17th in the Dalal Street Journal's survey on 'India's Best Wealth Creators'

Other initiatives

  • For the first time ever in India, the NCPEDP - MphasiS Universal Design Awards were introduced to encourage those who have been promoting the cause of 'Accessibility' -- to create examples and inspiration for other organizations and individuals alike
  • MphasiS partnered with National Centre for Promotion of Employment of Disabled People (NCPEDP) to support three athletes representing India in the Para-Sports category at the Commonwealth Games

About MphasiS

MphasiS is a leading applications services, remote infrastructure services and business process outsourcing services provider. The company delivers real improvements in business performance for clients through a combination of technology know-how, domain and process expertise. With currently close to 40,000 people, MphasiS services clients in financial services & insurance, healthcare, communications, transportation, consumer & retail industries and to governments around the world. To know more, please visit www.mphasis.com.

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