• PAGE ONE
• INDEX
• HOME

MphasiS BFL Q1 net up 7.44 pc

Our Bureau

BANGALORE, July 14

MPHASIS BFL Ltd, the merged entity which came into being in February 2000, has recorded net profit of Rs 5.66 crore (Rs 5.09 crore losses in the corresponding period the previous year) on total revenues of Rs 73.5 crore for the quarter ended June 2001. T his represents a growth of 6.3 per cent in revenues from Rs 64.87 crore and a profitability of 7.44 per cent, according to the consolidated figures as per Indian GAAP.

The company's software and services business saw a slower growth because of the global slowdown. According to the Chairman and CEO, Mr Jerry Rao, ``The growth in the solutions and services business has slowed down since sales cycles have lengthened and t echnology spend in the US and Europe are being deferred.''

``Utilisation is 70 per cent and overhead expenditure has been under very tight control,'' he said. The company has cut down the number of employees in its software and services division from 1,399 in June 2000 to 1,244 in June 2001.

The company's IT-enabled services business, however, is ``on track,'' he added. IT-enabled services from MphasiS' call centre subsidiary, MsourcE, was Rs 3.7 crore (Rs 10 lakh).

MsourcE has a total of six active customers now, including a large US-based consulting firm, a large credit card processor, a large portal, an Indian insurance company and a bank in Singapore. The call centre had 245 employees as of June 2001, up from 91 on June 30, 2000.

EPS for the quarter was Rs 3.45, against Rs 2.97 for the year ended March 2001 and minus Rs 5.71 for the June quarter last year.

The Indian GAAP consolidation has eliminated inter-company transactions, and has not considered the amortisation expenses of deferred stock compensation. The 6.5 million shares of MphasiS Corporation and its subsidiaries have been taken as fully dilutive with effect from June 15, 2000.

Being a US-based company, MphasiS has also taken on record the audited financial results of the parent company (formerly BFL Software Ltd) as per the US GAAP. Total income according to this was Rs 43.13 crore (Rs 40.56 crore for the corresponding quarter the previous year) and net profits were Rs 7.41 crore (Rs 2.52 crore).

Shareholders' nod for Chrysalis' investment

Shareholders of MphasiS BFL approved of private equity firm Chrysalis' investment of Rs 45 crore in the company at an extraordinary general meeting on Saturday.

The investment represents a seven per cent stake in the equity of the company at Rs 350 per share. The board of MphasiS had accepted this at a board meeting on June 15.

The offer price is approximately 75 per cent over the current market price and 12 per cent over SEBI's minimum formula prescribed, said MphasiS in a press release.

Mr Ashish Dhawan, Director of Chrysalis, joined the board of MphasiS on June 15.