IT firm Mphasis, a subsidiary of HP-owned EDS, has seen net profit after tax almost doubling to Rs 229.23 crore for the third quarter ended July 31, 2009, increasing 128 per cent from Rs 100.7 crore a year earlier.

Sequentially, net profit increased 2.1 per cent from Rs 224.5 crore posted in the second quarter ended April 30.

Total revenues in the quarter ended July 31 rose 42.5 per cent to Rs 1,105.57 crore, from Rs 775.95 crore in the same period of the previous fiscal, the company said. The topline rose slower at 5.4 per cent on a quarter-on-quarter basis from Rs 1,048.5 crore posted in the period ended April 30.

Operating profit increased 132.8 per cent to touch Rs 240.6 crore over the same quarter a year earlier. Operating margins in the third quarter increased 21.8 per cent from 13.3 per cent in the same quarter of the previous year. EPS increased 126.9 per cent to Rs 10.96 on an annualised basis.

Mphasis added seven new clients across verticals, including a leader in consumer products, a healthcare services provider and a telecom provider.

Mphasis chief executive officer Ganesh Ayyar said that the company’s agreement last week to acquire AIG Solution Systems (AIGSS), the IT arm of American insurance giant AIG was in tune with its decision to acquire greater depth and breadth in focussed verticals like insurance.

The applications services business, which employs close to 15,000 people is expected to gain significantly from the AIGSS acquisition, which will primarily help Mphasis strengthen its consulting services in the insurance space, and get guaranteed business from AIG.

Mphasis has changed its financial year to November-October from April-March with effect from November 2008.

The company employed 32,753 people as of July 31, 2009. Overall debtor days improved to 75 days from 77 days in the July quarter.

The addition of new clients, greater traction with existing clients in the BFSI and aviation sectors, sizeable investments in mutual funds and better turnaround times on the billing front led to cash balances increasing to Rs 649.9 crore at the end of July 31.

Source: Business Standard