A leading IT company saw its stock rise by 3 percent after announcing its Q4 FY25 results, which highlighted a strong surge in the order pipeline. The company also declared a substantial 470 percent dividend payout, signaling robust performance and continued commitment to shareholder returns.
Price Movement
During Friday’s trading session, Mphasis Ltd reached an intra-day high of Rs.2,547.80 per share, rising 3.22 percent from its previous close of Rs.2,468.10 each. The shares have retreated since then and are currently at Rs.2,508.10 apiece. Over the past five years, the stock has delivered over 2,160 percent returns.
Financial Performance
Mphasis Ltd experienced a significant rise in its stock price, supported by strong growth in its order pipeline and stable financial performance in Q4 FY25.
In Q4 FY25, the company reported revenue of Rs.3,770 crore, reflecting a 4 percent increase from Rs.3,624 crore in Q4 FY24. Sequentially, revenue rose by 8 percent from Rs.3,476 crore in Q3 FY25, indicating consistent business momentum.
Net profit for the quarter stood at Rs.447 crore, up 14 percent year-on-year from Rs.393 crore in Q4 FY24. On a quarter-on-quarter basis, net profit increased by approximately 5 percent from Rs.427 crore in Q3 FY25, showcasing steady earnings growth.
Order Book
At the end of the March quarter, the company’s order pipeline reached record levels, growing by 26 percent compared to December and 86 percent from the same quarter last year. Mphasis secured two large deals in the March quarter and 13 large deals throughout the financial year 2025.
The management highlighted that the company continued to win more proactive deals. The company experienced widespread success in winning total contract value (TCV) deals across different sectors, client types, and business models.
Dividend Announcement
The company has recommended a dividend of Rs.57 per equity share of Rs.10 each for the year ended 31 March 2025, subject to shareholder approval at the upcoming AGM. The dividend, representing a payout ratio of 470 percent, will be paid within 30 days of the AGM to shareholders with registered bank details.
Segmental Growth
During the quarter, Mphasis witnessed strong growth driven by the BFSI and TMT verticals, with the insurance segment also emerging as a key growth engine. The BFSI vertical saw a 5.6 percent increase sequentially and an 11.8 percent rise year-on-year, reflecting steady demand and performance. Meanwhile, the TMT segment recorded an 8.2 percent sequential growth and a significant 18.1 percent year-on-year increase, highlighting robust expansion in these areas.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 21.58 percent and a Return on Equity (ROE) of 18.39 percent. Its Price-to-Earnings (P/E) ratio stands at 28.43, lower than the industry average of 35.36. Furthermore, the company maintains a current ratio of 2.35, a debt-to-equity ratio of 0.21, and an Earnings Per Share (EPS) of Rs.86.75.
Written by – Siddesh S Raskar
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