Mphasis Q1 results preview: IT firm's net profit likely to decline 0.5% to Rs 403 crore; margins expected to remain flat

Mphasis Q1 results preview: Bengaluru-headquartered midcap IT company Mphasis is set to declare its first-quarter result on Thursday, July 20, 2023. As per Zee Business Research estimates, the company is set to report a consolidated profit of Rs 403 crore quarter-on-quarter (QoQ) for the April-June quarter as against Rs 405 crore in the fourth quarter of the previous financial year, which translates to a marginal decline of 0.5 per cent as against the corresponding period a year ago. 

The estimates say that the company will record a consolidated revenue of Rs 3,365 crore QoQ, 0.1 per cent up from Rs 3,361 crore in the fourth quarter of FY23.

In terms of the US dollar, the company's revenue for the first quarter of the current financial year is expected to go down 1.0 per cent, from $408 million to $412 million.

The IT company is estimated to see a fall of 1.1 per cent in its CC earnings in the first quarter.

The company is also expected to see a fall of 1 per cent in its dollar income. 

For the April-June period, Mphasis is expected to record Rs 510 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA).

It would be a decline of 1.0 per cent from the Rs 515 crore the company reported in the previous quarter.

The analysts estimates say that Mphasis will report a margin of 15.2 per cent, a decline of 0.1 per cent from Q4FY23.

According to the estimates, a weak performance in the banking financial services and insurance (BFSI) and the mortgage business is likely to impact the earnings of the company in the quarter under review.

Investors will closely track the outlook on direct business, the company's digital risk outlook, new deals won by it, the margin outlook, and the attrition rate of the company.