Mphasis has announced its first quarter financial results which ended on 30th June, 2014. The results revealed that the direct organic business of the company grew from 0.8% to 2.0%. Along with this the consolidated revenues declined by 3.5% QoQ in Q1 FY15 to ` 1,490 crore; Net of rupee appreciation, the decline is 2.6%. Moreover, the gross margins fell 40 bps to 26.2% over the period of two months which ended on 31st March 2014 and the operating margins were at 41%. Additionally, to this the cash equivalents of the company also increased to 2,664 crore from 384 crore.
Apart from announcing the financial results the company has also appointed of Suryanarayanan V (Surya) as the Chief Financial Officer (CFO). He has been associated with the company since 2009 and prior to this he was serving the company as the interim CFO.
Commenting on the occasion, Ganesh Ayyar, Chief Executive Officer- Mphasis, said, “This quarter, we saw contrasting trends in our direct business. On one hand we are witnessing accelerated success in our direct organic business. On the other hand headwinds in the US mortgage market is impacting Digital Risk performance. Our investment in specialization is resulting in strong pipeline and wins.”
The company has changed its financial year from 31st October to 31st March. Moreover, the QoQ comparison, the preceding quarter have been normalized from 2 to 3 months.