Mphasis reports 4.6% revenue increase, highlights growth in Gen AI  

Mid-tier IT solutions company Mphasis reported a consolidated net profit of ₹404 crore for the June quarter, marking a 2.1% increase from the same period last year. Sequentially, net profit rose by 2.9%. 

Revenue from operations for Mphasis grew 4.6% year-on-year to ₹3,422 crore, with a quarter-on-quarter increase of 0.2%. On a constant currency basis, revenue saw a 0.1% quarterly growth and a 3.1% yearly increase. The EBIT margin for the quarter stood at 11%, and the company has maintained its FY25 margin guidance of 14.6-16%. 

The total contract value (TCV) for the quarter was $319 million, with 84% of it in new-generation services. This follows a TCV of $177 billion in the previous March quarter. 

Mphasis' results reflect a growing trend in the Gen AI space. While Gen AI has yet to significantly boost revenue, it has become a top priority for clients. CEO and Managing Director Nitin Rakesh noted the strong growth momentum in AI-powered deals, driven by the company's "Savings led Transformation" theme. Rakesh expressed cautious optimism about the continued improvement in client demand and the strength of Mphasis' deal pipeline. 

“As AI-enabled platforms are adopted at scale and infused across all deal archetypes and solutions, we continue to witness a strong growth momentum in Artificial Intelligence (AI) powered deals,” said Rakesh. 

In addition to its financial results, Mphasis announced the launch of Mphasis NeoCrux, a tool designed to improve software engineer productivity by streamlining the Software Development Lifecycle with a Gen AI powered Agent Orchestrator. NeoCrux allows engineers to integrate various artificial intelligence (AI) Agents rather than being limited to one. Another launch, NeoZeta, is a Gen AI-based Enterprise Modernisation Platform that provides transparency in the re-learning process, aiding organisations in modernising mission-critical systems. 

The NeoCrux platform supports critical resources within agile teams, delivering measurable acceleration in IT Value Stream from idea to launch. Its first release includes an in-IDE assistant for software engineers, with plans for an AI-powered requirement engineering workbench for product owners. The enterprise edition of NeoCrux offers personalised AI assistance, learning and adapting to individual engineers’ behaviors.