Q1 2027 Mphasis Ltd Earnings Call Transcript
Key Points
- Mphasis Ltd (BOM:526299) reported strong Q1 FY27 revenue growth of 8.3% year-over-year in constant currency terms, reflecting robust deal conversion and expanding momentum in AI-led offerings.
- The company has seen a significant increase in its pipeline, which has grown to 2.8 times its original size, reaching an all-time high at the end of Q1.
- Mphasis Ltd (BOM:526299) has maintained its FY27 guidance for high single-digit to low double-digit growth in constant currency, despite the uncertain macro-environment.
- The launch of the Tria platform has been well-received, with multiple opportunities moving from conversation to closure within seven weeks of its launch.
- The company has successfully expanded its client base, adding five clients in the $20 million-plus band on a trailing 12-month basis, reflecting wallet share expansion and successful ramp-up of large deals.
- Q1 FY27 EBIT margin was down by 60 basis points, impacted by ramp-up costs of new deal wins and acquisition costs.
- The insurance segment experienced a sequential decline of 3.1% in constant currency terms, following four consecutive quarters of strong growth.
- There is a noted increase in competitive intensity in traditional deals, with pricing pressure becoming more intense.
- The company's operating cash flow conversion is expected to remain at 80% of net income for FY27, which is below the industry norm.
- The correlation between trailing 12-month total contract value (TCV) and revenue has decreased, indicating a higher mix of short burst deals that are consumed quickly.
The conference is now being recorded. Good morning, ladies and gentlemen, and thanks for joining joining joining (technical difficulty) -- sorry for one moment.
Good morning, ladies and gentlemen. And thanks for joining the emphasis Q1 FY27 earnings conference call. I'm Neo, your moderator of the day. We have with us today, Mr. Aravind Viswanathan, CEO of Mphasis; Mr. Aravind Viswanathan, CFO; and Mr. Vinay Kalingara, Head of Investor Relations.
As a reminder, there's a webcast link in the call invite email that the Mphasis management will be referring to today. The same presentation is also available on the emphasis website, www.emphasis.com. In the Investor Section under the Financial and Filings, as well as both on BSC and NSC websites. I requested to have the presentation handy. (Operator Instructions) Please note that this conference is being recorded.
Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature, and may involve risk and
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