Mphasis reports mixed Q4 results; stock rises over 6%; check out what brokerage recommends

Mphasis shares gained over 6 per cent in Friday's (April 26) trade and touched the day's high at Rs 2370.7 apiece on BSE. The buying interest in the stock came after the information technology (IT) company reported mixed Q4FY24 numbers. 

At around 10:35 a.m., shares of Mphasis traded 4.3 per cent, or Rs 96, higher at Rs 2329.25 apiece. The market capitalisation of the company at around the same time stood at Rs 44,086.26 crore. The stock closed 2.92 per cent at Rs 2,298.35 apiece on BSE. 

Mphasis Q4 results 

On Thursday after market hours, the IT company logged a consolidated net profit of Rs 393.2 crore against Rs 373.6 crore quarter-on-quarter (QoQ) which was up 5.2 per cent a slight miss from Zee Business' estimate of Rs 395 crore. 

For the quarter ended March 31, the company registered revenue of Rs 3,412 crore against Rs 3,338 crore QoQ, a slight miss from the estimate of Rs 3,381 crore. 

The earnings before interest and tax (EBIT) stood at Rs 508 crore against the estimate of Rs 497.3 crore, up 2.2 per cent QoQ. The EBIT margin of the company for the quarter under review remained unchanged QoQ at  14.9 per cent. 

Management commentary

In its investor presentation, the company gave the following guidance for FY25: 

>>Despite uncertainty in spending and sentiment, the FY25 outlook is better than the previous year. 

>>Expect FY25 to be above-industry growth; gaining from tech-led, account focused strategy.

>>Continue to execute in areas of growth and invest across capabilities and verticals.

>>Target operating (EBIT) margin band of 14.6 per cent to 16 per cent >>Maintain sustainable and steady margins in a narrow band while investing for growth.

>>Focus on productivity, efficiencies, and operating leverage.

What should investors do?

Morgan Stanley has maintained an 'equal weight' rating and has given the target of Rs 2,600 apiece.

Mphasis share price: Past performance 

In a year, Mphasis shares have gained over 31 per cent against Nifty50's rise of over 26 per cent. 

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