Mphasis BFL did well to recover from the red in morning trades after the company declared its results at the onset of trading on Wednesday.
By 11:00 IST, the scrip surged 6.36% to Rs 650.10 boosted by a upbeat guidance for 2003-04 by the company. The scrip recorded volumes of 45,543 shares on BSE by that time.
For Q4 ended 31 December 2003, the company (on a consolidated basis) recorded a 41.3% rise in net profit to Rs 18.72 crore on a 43.9% increase in net sales to Rs 120.88 crore (Rs 1.2 billion).
These came in below prior projections, however. capitalmarket.com (on the basis of a poll of four software analysts) had predicted the company would turn out a net profit of Rs 18.8 crore to Rs 21.1 crore. Net sales were expected at between Rs 123.2 crore (Rs 1.23 billion) and Rs 130.4 crore (Rs 1.3 billion).
On a sequential quarter-on-quarter basis, net profit growth was expected at between 3.3% and 15.9%. Net profit in DQ 2002 was at Rs 18.2 crore. While sales growth was expected at between 6.2% and 12.4%. Sales in DQ 2002 were at Rs 116 crore (Rs 1.16 billion).
Meanwhile, for the full year ended 31 March 2003, the group posted a net profit rise of 63.3% to Rs 66.92 crore on a 37% increase in net sales to Rs 429.26 crore (Rs 4.29 billion). The company also declared a dividend of Rs 3 per equity share (on an equity share of par value of Rs 10), subject to the approval of the shareholders at a soon-to-be held annual general meeting.
The stock's recovery today is sheerly on the strength of the impressive future guidance by the company. The company said that the group, in FY 2003-04, is expected to continue to show a high revenue growth, of 40-45%, and a 30-35% increase in profit.
The company also hopes to see the revenue of MsourcE, the IT-enabled service, to grow by 100% in the year ending 31 March 2004 with operating profit margin levels in double digits in the second half of FY 2003-04.
Incorporated in August 1992, Mphasis BFL (previously known as BFL Software) was promoted by a group of industrialists and professionals. Mphasis BFL is an India-based global software solutions company, operating from Bangalore. It specialises in the delivery of a variety of IT solutions for large and reputed clients including global leaders like Compaq, Fed-Ex, NEC, Samsung and ING. Mphasis BFL's expertise covers solutions in the e-commerce, systems, enterprises, networking and telecom spaces.
The company also creates software products (de-merged into a subsidiary from 2000).
The public, institutions and foreign bodies hold 5.04%, 11.59% and 11.07% stake in the company, respectively.
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