IT Software services for banking, financial services and insurance. Formed in 2000

Key Business Segments

  • Banking and capital markets: 4008 cr, 45%
  • Insurance: 1005 cr, 12%
  • Information technology, communication & entertainment: 1397 cr, 16%
  • Emerging technologies: 2413 cr, 27%

Financials

  • Revenue: 9000 cr
  • Expenses:
    Employee expense: 4900 cr
  • Net income: 1200 cr

Services Rendered

  • Application development: 33% (of revenue)
  • Application maintenance: 30%
  • Infrastructure management services: 13%
  • Knowledge processing services: 9%
  • Service / technical Helpdesk: 7%
  • Transaction processing service: 7%
  • Customer service: 1%
  • License income: 19 cr, 0%
  1. Application Maintenance involves maintenance of existing customer software and is mostly undertaken on annuity terms.
  2. Application Development refers to customized software development services based on the requirements and specifications given by customers and documented in a Statement of Work.
  3. Customer Services include receivables collection support, product support, enrollment etc. provided to clients through BPS operations.
  4. Knowledge Processes refer to the outsourcing of relatively high-level processes of the customer and Risk, Compliance and Transaction management solutions in the US housing market.
  5. Transaction Processing includes claims processing, account opening and maintenance, data processing and management.
  6. Service/Technical Help Desk comprise of inbound and outbound customer interaction programs including technical product support, customer care and allied services.
  7. Infrastructure Management Services include end-to-end managed mobility solutions covering workplace management & other support services, hosting services which comprise of mainframe or midrange, application & web hosting services, Payment Managed Solutions and data center services focused on migration, automation & other software services.
  8. License Income pertains to the income from license sale in the health care space of the Company’s product Javelina and Wynsure. Revenues grew by 48.6% in FY20.

Geographic Revenues

As of year 2020 (approx values):

  • USA: 6874 cr, 78%
  • India: 448 cr, 11%
  • EMEA: 988 cr, 5%
  • ROW: 512 cr, 6%

Delivery Location

  • Onsite: 5109 cr
  • Offshore: 3714 cr

Project Type

  • Time and material: 6518 cr, 74%
  • Fixed price: 2305 cr, 26%
We continue to focus on increasing the revenue from Fixed Price contracts as it is an important margin lever for us.

Revenue sources

  • Direct international: 6155 cr, 70%
  • DXC / HP business: 2382 cr, 27 %
  • Others: 285 cr, 3%

Customers

Blackstone portfolio companies
Hewlett Packard enterprise

Types of Risks

  • Foreign currency exchange rate risk
  • Liquidity risk - low
  • Interest rate risk - low
  • Credit risk (due to covid)

Financial Ratios

  • Cost of Revenue (COR): 73.6 %
  • Gross profit: 26.4 %
  • Operating profit (= gross profit - selling and general administration expenses): 16%
    Note: operating profit does not include other income and interest expenses
  • Current ratio: 2
  • Return on equity: 21.4%

Other Notes

  • Mphasis DeepInsights: A cognitive intelligence platform for faster and effective access to insights from data. Developed by NextLabs – the research and innovation hub of Mphasis
  • HyperGraf – business intelligence and analytics solution
  • Received US patent for an AI system to analyze data from unstructured data sources. The newly issued patent relates to leveraging Machine Learning (ML) algorithms to analyze free text from a variety of communication channels – including news and editorial articles, blogs, emails, consumer complaints and social media.

Disclaimer: This is not an investment advice. This is just research done by me for my own personal investments. I am in no way associated with these companies. Although best efforts are made to ensure that all information published is accurate and up to date, occasionally unintended errors and misprints may occur.