Mphasis-BFL net profit increases 16.2% to Rs 16.13 crore

Bangalore: The Mphasis-BFL group has shown an increase in margins for the September 2002 quarter with a net profit Rs 16.13 crore, representing a 16.2-per cent jump from the previous quarter.

“Higher utilisation and higher onsite billing rates are largely responsible for the improved margins,“ says Mphasis-BFL chief financial officer Ravi Ramu. Utilisation rates are 74 per cent (up from 73 per cent in the June quarter) and onsite billing rates have gone up from $64 to $66 plus.

The revenues in the September 2002 quarter were Rs 102.89 crore, up by 35 per cent over the corresponding quarter the previous year. Sequentially, the revenues have gone up by 14.9 per cent from the previous quarter's Rs 89.5 crore.

The company is taking up more of application development and systems integration type of projects, where margins are higher, says Ramu. A lot of the initial stage of such projects needs to be done onsite, he says, explaining the higher proportion of revenues from onsite work.

Sixty-seven per cent of the revenues came from onsite, compared to 59 per cent the previous quarter. But the fixed price projects component is down from the previous quarter's 27 per cent to 24 per cent, with a proportionate increase in time and material projects.