Financial Daily from THE HINDU group of publications
Wednesday, Jul 10, 2002
Corporate Results - Software
MphasiS BFL Q1 net up
BANGALORE, July 9
ANNOUNCING its results for the first quarter ended June 30, MphasiS BFL Group said that its net profits for the quarter increased to Rs 13.85 crore (Rs 4.80 crore for the quarter ended June 2001).
The improvement in net profit came from higher gross margins and optimising selling, general and administrative expenses, the company said.
Quarter on quarter revenues increased by 6.6 per cent to Rs 89.5 crore, from Rs 83.9 crore for the quarter ended March 2002. The increase in revenues was mainly because of its call centre and BPO business arm, MsourcE and the shift in business mix from onsite to offshore, according to the company.
Net profits for quarter on quarter increased to Rs 13.85 crore from Rs 13.25 crore .
"The software business has been flat and margins are under pressure, but we have been able to control our costs and take proactive steps to maintain our profit growth," said the Chairman and Managing Director, Mr Jerry Rao. In fact, this quarter saw a higher cost of revenues at Rs 57.06 crore (Rs 50.3 crore), mainly because of expansion of facilities and increase in staff at MsourcE.
The increase in cost of revenues resulted in gross profits coming down by 3.6 per cent to Rs 32.4 crore from Rs 33.6 crore in the previous quarter.
However, because of the reduced selling expenses and general administrative expenses, net profit was higher this quarter.
The company also gained Rs 86.3 lakh on foreign exchange during the quarter as against a loss of Rs 1.2 crore in the quarter ended June 2001.
A higher provision for taxes was made at Rs 2.18 crore compared to Rs 65.4 lakh for the previous quarter. "This is due to the imposition of taxes to a limited extent with effect from April 1 2002 on profits from Indian units which hitherto had enjoyed tax holidays", said the company.
MsourcE recorded revenues of Rs 14.58 crore for the quarter as against Rs 3.90 crore for the corresponding quarter the previous year. MsourcE also reported profits for the first time, a quarter earlier than estimated. "The MsourcE story is unfolding well," said Mr Rao. MsourcE has 11active clients and nearly 1,100 staff.
The company added 15 new clients this quarter including one at MsourcE. Nine of them are in the financial services vertical.
Manpower utilisation rates remained at 72 per cent. Total cash balance on June 30, 2002 was Rs 85.2 crore.
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