21 October 2015
2QFY16 Results Update | Sector:
Technology
BSE SENSEX
27,288
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val (INR m)
Free float (%)
S&P CNX
8,252
MPHL IN
210.1
96.6/1.5
475/331
9/18/11
59
39.5
CMP: INR460
TP: INR520 (+13%)
Mphasis
Neutral
Margins above estimate, deal bookings sanguine
Financials & Valuation (INR b)
Y/E Mar
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)*
BV/Sh. (INR)
RoE (%)
RoCE (%)
P/E (x)
2015 2016E 2017E
57.9
8.7
6.8
32.3
-8.6
12.8
13.1
49.6
14.3
61.5
9.2
7.5
35.7
10.6
13.3
13.3
52.5
12.9
67.5
11.0
8.6
41.0
14.9
14.3
15.5
48.8
11.2
EV/EBITDA(x) 8.6
7.3
5.7
Annualized values for 5M FY14E
Estimate change
TP change
Rating change
Delivering in the focus areas:
MPHL’s revenue was up 1.1% QoQ to USD237m—
line with our estimate adjusted for domestic BPO business. Direct International
segment grew 5.2% QoQ (CC), driving overall revenue momentum. LTM deal TCV
of USD320m in the segment lends visibility of above-industry average growth in
two-thirds of the business.
Margins above estimate:
EBIT margin increased 120bp QoQ to 13.9% (above our
estimate of 13.3%) despite the inclusion of two months’ revenue from the lower-
margin domestic BPO business. MPHL expects 13-15% EBIT margin in 2H, up from
12-14% outlook for 1H, despite a 170bp impact of wage hikes effective in 3Q. PAT
excluding exceptional item was INR1.9b v/s our estimate of INR1.88b.
Deal signings improve:
MPHL signed deals of TCV USD90m in 2Q—the highest in
last four quarters, wherein the TCV remained in the USD65m-80m range. About
70% of the deals were in its focus areas of Digital | GRC | Next-Gen IMS.
Sanguine margin guidance on multiple levers:
Despite a negative 170bp impact
of wage hikes in 3Q, management’s margin guidance exudes confidence due to:
[1] Improving quality of revenues and reduction of domestic BPO; [2] increasing
growth from deal wins in target areas; [3] improving operational efficiencies.
Valuation and view:
We expect revenue CAGR of 3.4% and EPS CAGR of 12.7%
over FY15-17. While valuations at 11.8x/10.4x FY16E/17E P/E are at a steep
discount to peers (particularly after factoring in the cash balance), the overall
revenue growth improvement is imperative to bridge the same. We raise our
target price to INR520 following impressive execution in Direct international
business and deals-led visibility. Our TP discounts FY17E operating PAT by 11x,
added to net cash on book of INR120/share (compared with INR101 at present).
Neutral.
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 3982 5424
Sagar Lele
(Sagar.Lele@MotilalOswal.com); +91 22 3982 5585
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Mphasis
Revenues: Healthy growth in the direct international business
MPHL’s 2QFY16 reported revenue grew 1.1% QoQ to USD237m, including two
months of domestic BPO operations. We were estimating USD232m, but this
excluded domestic BPO operations. Adjusting for the same, our revenue
estimate would be USD235m, compared to the reported USD237m.
This marked the third consecutive quarter of growth; driven by the direct
international channel; which is the company’s focus area.
Digital Risk led overall revenue growth in the last three quarters because of
strong deal wins. The segment’s quarterly run rate now stands at ~USD43m. The
segment grew ~23.2% QoQ as per our analysis to ~USD38m in 1QFY16, on the
back of 37.4% QoQ growth in 4QFY15, rebounding from 32.4% decline in
3QFY15.
HP Channel declined 7% QoQ in dollar terms to USD63m. The management’s
outlook remains of continued decline for now, with little visibility of a
turnaround anytime soon.
Revenues in 2Q also included revenues from prior periods (INR231m). The
revenue booking pertains to efforts made in the previous quarter, but milestone
based booking in the current quarter. The management cited there were some
costs attached to the revenue as well, that got reflected in the financials.
Exhibit 1: Revenue growth aided by pick-up in the direct international channel
Revenue (USD m)
279 287 276 271
266
4.4
Growth (%)
250 239
226 228 234 237
2.9
11.0 1.0
1.1
1.1
0.8
-1.6
-2.0 -1.8
-2.1 -1.9
-3.1 -4.2
2.7
-3.8
-4.5
-5.2
-5.4
172
263 265 260 255
252 248
237
Mar 14*: 2M quarter, Jun-14 growth number normalized for comparison Source: MOSL, Company
2QFY16 Profitability: Beat on margins
EBIT margin expanded by 120bp during the quarter to 13.9%, above our
estimate of 13.3%; despite the inclusion of two months revenue from the lower
margin domestic BPO business.
Gross margin was 26.9%, +80bp QoQ, a tad above our estimate of 26.5%. SGA
was marginally higher at 11.9%, v/s estimate of 11.7%.
Excluding exceptional items, PAT grew by 9.1% QoQ to INR1.9b, compared to
our estimate of INR1.87b, on account of the margin beat.
During the quarter, there was INR53m post tax exceptional loss arising out of
provisions for impairment of intangible assets under development.
21 October 2015
2

Mphasis
Exhibit 2: Margin expansion led by improved operational efficiency
EBIT Margin (%)
16.5
18.6
16.0
14.7 15.0
16.2 16.7
17.6
S&M as % of Sales
13.0 13.0 12.5 12.7 13.9
7.9
6.6 6.2
5.2 5.9
15.5 14.7 15.8 15.3 15.0 15.1 14.8
5.2 5.4 5.9 6.0 4.9 5.1 5.1 6.0 6.4 5.9
5.2 4.1
3.9 5.0 4.9
Source: MOSL, Company
Takeaways from Management Commentary
USD90m TCV deals signed:
MPHL has announced USD90m TCV of deal wins
during the quarter. The entire amount corresponds to new deal wins, and
doesn’t include any renewals. Of the total deal wins during the quarter, 25% was
contributed to by IMS, 19% by AMS and 26% by Digital and GRC. This took the
total deal wins in 1HFY16 to USD166m; which should help grow the direct
international business faster than the market in FY16.
Digital Risk should continue growth:
This was the third consecutive quarter of
strong growth in Digital Risk. The growth was led by ramp up in past orders, and
the company expects this to aid to growth in 3Q too. Of the ~USD41m quarterly
revenue run rate of Digital Risk, ~USD30m is sustainable, while the rest is
project-based.
Exhibit 3: Rapid growth in Digital Risk led to fall in proportion of declining HP revenues to 29%
Revenue mix (%)
HP Channel
Direct Channel
34.2
Digital Risk Rev. (USD m)
42.5 46.3 45.5
29.6
38.0 34.0
22.4
38.0 40.8
45 46 48 54
59 60 63 64 64 64 65 69 71
73
55 54 52 46
41 40 37 36 36 36 35 31 29
27
30.8
Mar 14*: 2 Month quarter
Source: Company, MOSL
Direct International revenues to grow above industry in FY16:
MPHL expects to
grow its Direct International business, 67% of overall revenues, to outgrow
industry average in FY16. The start to the year, deal wins and pipeline all drive
confidence towards that end. Impact from sell-off in domestic BPO employees is
~4% of revenues, with FY16 seeing more than two quarters of that in the
numbers.
Target margin band revised upwards:
With 120bp margin expansion during the
quarter, MPHL is at the mid-point of its target margin band of 12-14%. Despite
an expected margin impact of 170bp in 3Q on account of wage hikes, the
company has significant levers to maintain margins. It has hence revised its
3
21 October 2015

Mphasis
target margin band upwards to 13-15%. Margin improvement is likely to stem
out of higher proportion of revenue from direct international revenues, apart
from improved operational efficiency.
Change in estimates
Our revenue estimates for FY16/17 have largely remained the same. We were
expecting the exclusion of domestic BPO revenues during this quarter. However,
financials included two months of revenue. This however, only affects the timing
of revenue and not the quantum.
We currently model operating margin uptick from 2HFY16 in accordance with
the management guidance, sale of the domestic business and pick-up in Digital
Risk. Our estimates remain unchanged post the quarter and we expect EBIT
margins of 13.5% and 14.8% for FY16E and FY17E respectively.
Our EPS estimates for FY16E and FY17E have marginally moved higher on
account of tweaking other income and the lower tax for this quarter.
Exhibit 4: Change in estimates
Revised
FY16E
FY17E
INR/USD
USD Revenue - m
EBIT Margin (%)
EPS - INR
65.3
938
13.5
35.7
67.0
1,010
14.8
40.9
Earlier
FY16E
64.7
938
13.5
35.5
FY17E
67.0
1,008
14.8
40.4
Change (%)
FY16E
FY17E
1.0%
0.0%
0.0%
0.1%
0bp
0bp
0.4%
1.3%
Source: MOSL, Company
Valuation and view
Our FY17 revenue estimate stands at USD1,010m compares with FY13 (YE
October) annual revenues of USD1,025m. Revenues from the HP channel have
posted a decline in 18 of the last 20 quarters and now constitutes to ~27% of
total revenues. The contribution of the HP channel has significantly reduced in
the portfolio, and the company has laid its focus on the direct international
channel, which it aims to grow above industry average.
With strong deal wins, rebound in revenues from Digital Risk, and the hive-off of
the domestic BPO business, we estimate MPHL to stem the decline in revenues
and post growth at a CAGR of 3.4% over FY15-17E. Revenue growth confidence
would be the single most important factor for a re-rating. While valuations at
12.9x/11.2x FY16E/17E are much discounted to peers (particularly after
factoring the Cash Balance), the rate of decline within HP channel remains a risk.
We currently factor 10%/5% decline in FY16/17.
Impressive execution in Direct International business lends visibility of above-
industry growth in 2/3
rd
of MPHL’s business. Our target price of INR520
discounts FY17E operating PAT by 11x, added to expected net cash of
INR120/share (compared to current cash of INR101/share). Reprieve in HP
channel could drive some positive surprise on the top-line performance.
21 October 2015
4

Mphasis
Key Triggers
Reduction/stoppage of decline in the HP channel
Momentum gain in Direct International channel
Pick up in quarterly deals TCV
Key risks
Continued volatility in Direct Channel emerging markets
Failure to grow Direct International channel faster than industry growth
Volatility in Digital Risk
Exhibit 5: MPHL 1-year forward PE chart
53
41
29
17
5
12.7
6.4
15.7
12.7
4.0
0.0
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
48.2
Exhibit 6: MPHL 1-year forward PB chart
12.0
8.0
3.5
3.0
1.5
1.6
PB (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
9.8
Source: Company, MOSL
Source: Company, MOSL
Exhibit 7: Comparative valuation
Company
Mphasis
Mindtree
KPIT Tech
Hexaware
Persistent Sys.
Mkt cap Rating
(USD b)
1.5
1.9
0.4
1.2
0.9
Neutral
Neutral
Neutral
Sell
Neutral
TP
(INR)
520
1,400
125
255
665
Upside
(%)
13.3
-5.0
0.8
0.0
-1.9
EPS (INR)
FY16E
FY17E
35.7
73.1
10.3
13.9
38.8
40.9
93.2
13.2
16.3
47.3
P/E (x)
FY16E
FY17E
12.9
20.2
12.0
18.4
17.5
11.2
15.8
9.4
15.7
14.3
RoE (%)
FY15-17E CAGR (%)
FY16E
FY17E USD rev.
EPS
13.2
27.9
14.7
30.7
20.6
14.3
29.3
16.1
34.1
3.3
15.4
3.7
16.5
12.6
20.8
5.7
23.6
21.9
16.0
14.1
Source: Company, MOSL
21 October 2015
5

Mphasis
Story in charts
Exhibit 8: HP Revenues have been declining rapidly…
HP Revenues
-5.9
56.5
44.4
36.8
34.5
% Change
Exhibit 9: … Now compounded with volatility in digital risk
Direct Channel (%)
HP Channel (%)
-13.8
-17.0
-19.9
777
FY10
731
FY11
586
FY12
-22.4
455
FY13
157
5MFY14
325
FY15
65.9
34.1
FY11
43.5
FY12
55.6
FY13
63.2
65.5
5MFY14
FY15
5MFY14* comparison normalized to be comparable
Exhibit 10: India revenue will reduce further after sale of
BPO operations
India Revenue
18.6 19.8
-6.5
-28.9
-19.5
3.4
-10.4
% Change
21.4
-1.1 -0.5
1.7
Exhibit 11: … and portfolio issues have dragged EPS lower
year after year
12.5
EPS
% Change
-0.1
-4.8
-19.0
43.2
48.6
39.4
37.5
35.3
14.7
32.3
-5.8
-8.6
1,229 989 925 1,097 876 1,359 1,218 1,479 1,462 1,455 1,480
5MFY14* comparison normalized to be comparable
Exhibit 12: 13-15% target EBIT margin band
EBIT Margin (%)
4.6
5.4
5.2
S&M (%)
6.3
6.2
6.1
6.0
Exhibit 13: Digital Risk revenues have rebound sharply
Digital Risk Rev. (USD m)
42.5
34.2
46.3 45.5
29.6
38.0
34.0
22.4
38.0 40.8
4.2
4.4
30.8
21.7
20.6
16.4
16.4
15.3
15.2
13.3
13.5
14.8
Source: Company, MOSL
21 October 2015
6

Mphasis
Exhibit 14: Operating metrics
Operating metrics
Jan-13 Apr-13
Vertical Contribution (%)
Banking and Capital Markets
24.7
35.9
Insurance
12.0
11.6
IT, Commn & Entmt
24.8
21.0
Emerging Industries
38.5
31.5
Total
100
100
Revenue by Project Type (%)
TTM
86
89
FPP
14
11
Revenue by Delivery Location (%)
Onsite
31
42
Offshore
69
58
Secondary Market Segment (%)
HP Channel
52
46
Mature Market - Direct Channel
36
47
Emerging Market - Direct Channel
12
7
Service Type (%)
App Maintenance
33
31
App Development
24
21
Customer Service
6
5
Service/Technical Help Desk
4
3
Trasaction Processing Service
5
5
Infra Management Services
27
20
Knowledge Processes
1
14
License Income
1
1
CLIENT METRICS
Client wins
BCM
3
6
Insurance
2
3
ITCE
3
4
Emerging industries
14
8
Total
22
21
Client wins Channels
Direct Channel
14
10
HP Channel
8
11
Total Client additions
22
21
Clients Contributing More than
USD1m
126
128
USD5m
40
42
USD10m
23
22
USD20m
9
9
Clients - Direct Channel
USD1m
55
62
USD5m
15
19
USD10m
9
10
USD20m
5
6
Clients - HP Channel
USD1m
71
66
USD5m
25
23
USD10m
14
12
USD20m
4
3
Jul-13 Oct-13 Jan-14 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
39.7
11.5
17.8
31.0
100
87
13
45
55
41
54
5
31
22
5
3
5
17
17
0
41.8
12.1
16.2
29.9
100
86
14
47
53
40
56
4
31
22
5
3
5
16
18
1
41.4
12.9
16.1
29.7
100
87
13
47
53
37
57
5
29
20
5
3
5
18
18
1
41.5
12.1
16.3
30.1
100
86
14
46
54
36
57
7
26
23
5
3
5
19
18
0
40.7
12.8
16.8
29.7
100
87
13
45
55
36
56
8
28
22
5
3
5
20
16
0
41.9
13.4
16.9
27.8
100
86
14
46
54
36
58
7
29
24
6
3
6
18
15
0
39.6
14.9
16.9
28.6
100
83
17
43
57
35
56
9
29
25
6
2
7
20
11
1
41.8
15.3
15.6
27.3
100
86
14
47
53
31
60
9
29
25
6
2
7
17
14
1
44.3
15.5
14.3
25.8
100
88
12
49
51
29
64
7
29
25
5
2
7
15
17
1
44.3
15.5
14.3
25.8
100
88
12
49
51
29
64
7
29
25
5
2
7
15
17
1
4
1
3
8
16
10
6
16
122
44
22
10
58
20
12
7
64
24
10
3
3
4
1
9
17
8
9
17
117
41
21
11
59
20
12
8
58
21
9
3
2
3
0
6
11
10
1
11
110
42
20
11
54
21
12
7
56
21
8
4
2
0
2
4
8
4
4
8
112
43
19
11
57
25
13
8
55
18
6
3
9
1
1
5
16
11
5
16
110
42
17
10
57
25
12
7
53
17
5
3
1
0
2
7
10
5
5
10
104
41
17
10
52
25
12
7
52
16
5
3
2
0
0
1
3
3
0
3
100
42
17
8
49
25
12
6
51
17
12
2
4
1
2
5
12
8
4
12
102
39
19
9
57
25
14
7
45
14
5
2
5
2
0
3
10
10
0
10
98
36
20
8
58
24
15
6
40
12
5
2
5
2
0
3
10
10
0
10
98
36
20
8
58
24
15
6
40
12
5
2
Source: MOSL, Company
21 October 2015
7

Mphasis
Financials and valuations
Key Assumptions
Y/E March
INR/USD Rate
Revenues (USD m)
Total Delivery Headcount
Net Addition
Per Capita Productivity (USD)
HP Channel Revenue (%)
Direct Channel Revenue (%)
Oct 10
45.8
1,104
39,962
5,330
27,630
71.2
28.8
Oct 11
45.7
1,117
40,408
446
27,646
65.9
34.1
Oct 12
53.0
1,036
36,640
-3,768
28,284
56.5
43.5
Oct 13
57.5
1,025
37,052
412
27,655
44.4
55.6
5ME
Mar 14
58.7
427
35,663
-1,389
28,717
36.8
63.2
Mar 15
61.3
944
34,059
-1,604
27,716
34.5
65.5
Mar 16E
65.3
938
23,402
-10,657
40,094
27.6
72.4
Mar 17E
67.0
1,010
25,477
2,075
39,624
23.4
76.6
Income Statement
Y/E March
Revenues
Change (%)
Cost Of Goods Sold
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Other Income
PBT
Tax
Rate (%)
PAT
Net Income
Change (%)
Oct 10
50,366
18.1
33,749
4,607
12,010
23.8
1,638
1,089
11,461
1,192
10.4
10,269
10,269
13.0
Oct 11
50,980
1.2
36,741
4,305
9,934
19.5
1,550
1,751
10,135
1,827
18.0
8,308
8,308
-19.1
Oct 12
53,574
5.1
38,133
4,930
10,511
19.6
1,745
1,513
10,279
2,357
22.9
7,922
7,922
-4.6
Oct 13
57,963
8.2
41,958
5,670
10,335
17.8
1,446
1,062
9,951
2,514
25.3
7,437
7,437
-6.1
5ME
Mar 14
25,939
7.4
18,600
2,942
4,397
17.0
504
389
4,282
1,191
27.8
3,091
3,091
-0.3
Mar 15
57,949
-6.9
42,540
6,708
8,701
15.0
980
1,687
9,408
2,630
28.0
6,778
6,778
-8.6
(INR Million)
Mar 16E
61,456
6.1
45,204
7,079
9,173
14.9
874
1,914
10,213
2,720
26.6
7,493
7,493
10.6
Mar 17E
67,503
9.8
49,108
7,431
10,964
16.2
989
1,894
11,869
3,264
27.5
8,605
8,605
14.8
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Capital Employed
Gross Block
Less : Depreciation
Net Block
CWIP
Goodwill
Investments
Deferred tax assets
Curr. Assets
Debtors
Cash & Bank Balance
Loans & Advances
Current Liab. & Prov
Net Current Assets
Application of Funds
E: MOSL Estimates
Oct 10
2,099
30,892
32,991
456
33,448
10,258
7,836
2,423
89
3,886
14,600
754
23,286
12,054
1,786
9,446
11,590
11,696
33,445
Oct 11
2,100
36,898
38,998
2,946
41,944
11,339
8,495
2,844
102
8,698
17,765
975
25,610
13,072
2,897
9,641
14,050
11,560
41,944
Oct 12
2,101
41,946
44,047
3,299
47,346
11,401
9,041
2,360
150
9,612
25,192
1,015
22,970
12,102
4,216
6,652
13,953
9,017
47,346
Oct 13
2,101
47,243
49,344
5,600
54,944
10,892
8,770
2,122
266
22,499
18,995
1,015
26,060
12,582
5,943
7,535
16,013
10,047
54,944
5ME
Mar 14
2,101
49,049
51,150
5,555
56,705
10,912
8,734
2,178
62
21,865
18,154
968
26,522
12,967
4,700
8,855
13,044
13,478
56,705
Mar 15
2,101
52,697
54,798
6,253
61,051
10,055
8,499
1,556
318
21,781
14,431
826
35,014
11,371
13,311
10,332
12,875
22,139
61,051
(INR Million)
Mar 16E
2,101
56,286
58,387
4,989
63,376
10,092
8,621
1,471
400
22,951
18,019
782
38,256
12,829
15,784
9,643
18,503
19,753
63,376
Mar 17E
2,101
59,847
61,948
3,017
64,965
12,212
9,609
2,603
400
22,951
18,019
782
35,708
14,435
11,630
9,643
15,498
20,210
64,965
21 October 2015
8

Mphasis
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E*
Cash P/E*
EV/EBITDA*
EV/Sales*
Price/Book Value
Dividend Yield (%)*
Profitability Ratios (%)
RoE*
RoCE*
Turnover Ratios
Debtors (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity Ratio(x)
Oct 10
48.6
56.7
157.2
3.5
7.2
8.5
7.3
5.9
1.4
2.6
0.8
36.4
36.4
77
18.0
0.0
Oct 11
39.3
46.9
185.7
6.5
16.5
10.5
8.8
6.9
1.3
2.2
1.6
23.1
22.2
90
19.4
0.1
19.1
19.6
86
20.6
0.1
Oct 12
37.5
46.0
209.6
17.0
45.3
Oct 13
35.3
42.3
234.9
17.0
48.1
11.7
9.7
6.5
1.2
1.8
4.1
15.9
17.4
78
25.9
0.1
5ME
Mar 14
14.7
17.1
243.5
7.0
47.6
11.7
10.0
6.6
1.1
1.7
4.1
14.8
16.7
74
29.0
0.1
Mar 15
32.3
36.9
260.8
16.0
49.6
12.8
11.2
7.5
1.1
1.6
3.9
12.8
13.1
77
31.0
0.1
Mar 16E
35.7
39.8
277.9
18.8
52.6
12.9
11.6
7.4
1.1
1.7
4.1
13.2
13.3
72
40.6
0.1
Mar 17E
40.9
45.7
294.8
20.0
48.9
11.2
10.1
6.4
1.0
1.6
4.3
14.3
15.5
74
33.1
0.0
Cash Flow Statement
Y/E March
Oct 10
Oct 11
CF from Operations
11,848
9,637
Chg. in Wkg. Capital
-2,757
1,247
Net Operating CF
9,091
10,884
Net Purchase of FA
-858
-1,985
Free Cash Flow
8,233
8,899
Net Purchase of Invest.
-7,929
-7,976
Net Cash from Invest.
-8,787
-9,961
Proceeds from equity
127
-704
Proceeds from LTB/STB
422
2,490
Dividend Payments
-858
-1,598
Net CF from Financing
-310
188
Free Cash Flow
8,233
8,899
Net Cash Flow
-6
1,111
Opening Cash Balance
1,792
1,786
Add: Net Cash
-6
1,111
Closing Cash Balance
1,786
2,897
E: MOSL Estimates; *Annualized values for 5m FY14E
Oct 12
9,627
3,862
13,489
-1,309
12,180
-8,341
-9,650
1,307
353
-4,180
-2,520
12,180
1,319
2,897
1,319
4,216
Oct 13
8,883
697
9,580
-1,324
8,256
-6,690
-8,014
2,040
2,301
-4,180
161
8,256
1,727
4,216
1,727
5,943
5ME
Mar 14
3,642
-4,674
-1,032
-356
-1,388
1,475
1,119
436
-45
-1,721
-1,330
-1,388
-1,243
5,943
-1,243
4,700
Mar 15
7,900
-50
7,850
-614
7,236
3,807
3,193
903
698
-4,033
-2,432
7,236
8,611
4,700
8,611
13,311
(INR Million)
Mar 16E
8,411
4,859
13,270
-871
12,399
-4,758
-5,629
825
-1,264
-4,730
-5,169
12,399
2,472
13,310
2,472
15,782
Mar 17E
9,593
-4,611
4,983
-2,120
2,863
0
-2,120
0
-1,972
-5,045
-7,017
2,863
-4,154
15,782
-4,154
11,628
21 October 2015
9

Mphasis
Corporate profile: MphasiS
Company description
MphasiS, an HP-EDS company is amongst the top IT
service providers from India. It has a balanced mix
of Application and BPO businesses, with good
growth in ITO business, and support of its US-based
parent, HP-EDS. Mphasis employs over 35,900
people.
Exhibit 15: Sensex rebased
Exhibit 16: Shareholding pattern (%)
Jun-15
Promoter
DII
FII
Others
60.5
5.8
22.9
10.9
Mar-15
60.5
5.0
24.3
10.2
Jun-14
60.5
4.7
26.2
8.6
Exhibit 17: Top holders
Holder Name
Aberdeen Global Indian Equity (Mauritius) Ltd
Aberdeen Global - Asian Smaller Companies Fund
Bajaj Allianz Life Insurance Company Ltd
LIC of India Market Plus 1 Growth Fund
ICICI Prudential Life Insurance Company Ltd
% Holding
6.9
2.0
1.8
1.6
1.4
Note: FII Includes depository receipts
Exhibit 18: Top management
Name
Balu Ganesh Ayyar
Elango R
V. Suryanarayanan
Seshagiri Dhanyamraju
Gopinathan
Padmanabhan
Designation
CEO and ED
Chief Human Resources Officer
CFO
Chief Strategy Officer
President – Global Delivery and
HP Channel Sales
Exhibit 19: Directors
Name
Friedrich Froeschl*
James Mark Merritt
Balu Ganesh Ayyar
Narayanan Kumar*
Davinder Singh Brar*
*Independent
Name
Lakshmikanth K Ananth
Shankar Maitra
Stefan Antonio Lutz
Mary Teresa Hassett
Exhibit 20: Auditors
Name
S R Batliboi & Associates LLP
Type
Statutory
Exhibit 21: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
MOSL
forecast
35.7
40.9
Consensus
forecast
34.9
39.1
Variation
(%)
2.3
4.6
21 October 2015
10

Mphasis
NOTES
21 October 2015
11

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