Mphasis, a mid-tier IT services firm, has reported a modest 2.1% rise in net profit for the first quarter, reaching Rs 404 crore. According to CEO Nitin Rakesh, a significant portion of the company’s current deal pipeline—about one-third—is driven by artificial intelligence.
In the quarter ending June 30, Mphasis saw its revenue from operations climb by 0.2% sequentially and 4.6% year-over-year, totaling Rs 3,420.8 crore.
Rakesh highlighted that AI is increasingly integral to the company’s deal-making process, enhancing efficiency, reducing manual labor, and accelerating market timelines. He believes that AI will become a core component across all operational and technological functions.
The shift in tech spending continues to focus on areas that deliver tangible value, despite a backdrop of economic uncertainty and shifting priorities. This trend is evident in Mphasis’s 17% sequential increase in its order pipeline, with a new contract value of $319 million, of which 84% pertain to next-generation services.
The company’s operating margin grew slightly by 0.1 percentage points compared to the previous quarter but fell by 0.4 percentage points year-over-year to 15%. Additionally, Mphasis’s workforce decreased by 1,019 employees to 31,645, while its utilization rate improved by 1 percentage point to 76% during the April-June quarter.