In Q4Fy25, the Ti Mphasis solution provider recorded direct revenues of ₹ 3,595 million rupees with a cash growth (CC) of 3.8 percent (QOQ) and a 6.8 percent CC growth. The company also saw a fair profits in 4.4 percent dry and 13.6 percent year -on -year to ₹ 446.5 million rupees killing the quarter. The CEO and MD Nitin Rakesh described it as the “strongest sequential quarter of the company in three years” and expressed its confidence that the 2016 fiscal year will bring faster growth in the industry-chan to overcome the growth seen in fiscal year 2015.
He attributed this action to a strong approach to the micro in an uncertain macro and emphasized the importance of the execution of the agreement. Only in an environment of static technological expense, Mphasis has gained market share when aligning with the strategic priorities of the client and adopting an ascending approach to growth.
A general comment on the results of your Q4 and FY25?
Q4 was quite decent. We had our best quarter in terms of sequential growth in the last three years. In general, the company grew by 2.9 percent sequentially and a direct business, 3.8 percent dry. The growth was directed by the bank, the insurance and the TMT. For the year, we have made a decent growth above the market or around 5.5 percent. The direct business rose more.
Q4 TCV was $ 390 million new, which is also the highest in the last seven quarters. Our pipe is at a record level, almost 85-86% year-on-year and approximately 26 percent dry. Offers are quite wide in all sectors. We had 13 great offers in the year, two or what were in the last quarter. One was an agreement of more than $ 100 million. The EPS was also the highest for the year. We had a 9 percent growth in EPS in fiscal year 2015.
While the environment is quite uncertain and volatile, the impulse is more promoted by having the correct propositions, baking the correct set of technological solutions and aligning them with each account and customer. It is not the apogee of growth that we have seen in the past, but a better projectory and acceleration towards the end of the year is welcome.
While some of their peers reported a decline in income or PAT, we saw the opposite. What has worked in your favor?
One is the focus on the micro in the middle of an uncertain macro. We get used to taking into account, client per customer, proposition by proposal, we structure the correct solution and incline it in the right construction. We follow what we call a client value frame, where we try not to play the price game, but the value game. We apply the net savings transformation and create propositions that are aligned with customer priorities. These are some activities that we have on the legs during the last quarters.
Second, everything is reduced to closing offers. Can you consume the TCV that you sold and make it income? If those agreements are profitable, there will be a growth in profits. It is a very thorough approach to the business. It is not about collecting discretionary spending, because we managed to win a growing part of the cake that is static. Even if technological expense is stable, they are reused throughout the strategic thesis priorities, aligning what becomes important.
What are some client conversations about the recovery of discretionary spending? Do you see this come back soon?
The tide is not increasing and not everyone is spending more money as they did 3-4 years ago. Since 2022, the cycle has been more around the optimization of costs and the prioritization of their expenses. We call it a reduction or adjustment of discretion.
Customers have begun to think differently about how they want to obtain technology or operations. They say that if they are spending so much money on managing their operations, why are there so many incidents? Why can’t it make it more a resistant to AI?
We are moving away from being a service provider to be a solution provider. And in that environment, we do not expect the expenses to return to what they were before. The budgets are not going down, but there will be a reprot of how they are spent, with whom they spend and what result and value the client will get.
That is the new reality. And the implementation of AI means reduction of human effort, which means that we will have to find other propositions that are not deep in human effort. That is the simple migration in the industry at this time.
Are you seeing winds of tail or green sprouts?
With respect to tariffs and macro and global trade, good news is that banks are likely are the largest exporters of financial services in the US. They are only subject to the second -order impact, which suddenly will not have to pay tariffs, since they are not producing a product.
For our portfolio, having 60 percent of BFSI is a blessing at this time. That said, there is no place to hide. No one is immune to these blows. But it is a second -order impact versus a direct impact.
The feeling of the consumer indicates that economic data could begin to change if this uncertainty lasts longer. For now, banks are quite stable. They will continue to spend in areas of strategic priority and will not throw money to projects as they did before.
THe represented a significant part of his income in the 2000 fiscal year with cents of 81pers. Are you seeing any reduction in your confidence in the midst of uncertainties?
The United States is our local market. We were born in the United States and served some of the best brands in the country in multiple sectors. I do not believe that the differential impact on the exposure is so high that we have to start safely, raise all our dollars and start putting them in other markets.
We are committed to continuous growth in this market. That said, we are also continuously to find diversification. The United States was 80 percent of our income when we were a third of our size and remains so. This means that the rest of the world is also growing at the same pace, if not faster.
We have a diversification plan that we are running in Europe. We have diversified our supply chain with locations outside of India and the United States. We are also diversifying our industries. So, we invest in the vertical business strategy in 2021, which TMT was our fastest growing industry this year because we are not only focused on growing the banking business. Then, the bank, not banking, top 10, not top 10, USA, not the United States are the three levels of diversification we are playing.
How have they been surpassing their largest counterparts in terms of growth of medium -level companies in terms of growth?
In the last 25-30 years, with each technological pivot, new players arise and capture and capture a most of the wallet, or the market itself, such as when the Internet became something or with the appearance of India.
This is because the democratization of access allowed customers to attend from anywhere in the world, and a lot of market share occurred towards India. This is how we won as an industry at the expense of the global sisters that were focused on the United States.
Around the last 10-12 years, when the digital wave began, we saw the appearance of many peer groups, but also companions from Eastern Europe, they were born in the digital age and were central data and data centered.
Not everyone in the industry grew at the same pace, especially in 2017-20. Now that we are going through a significant update with AI, with everyone in the output line, size does not matter, but the ability to adopt new technologies and deepen. It is becoming more nuanced with the depth of technology, and the ability to create new solutions and proposals that provide an advantage or differentiation becomes more important.
We are winning because we are increasing the correct solutions, we have the correct technological applications and we have the correct ideas and platforms around the implementation of the AI. Therefore, we are starting to see benefits
What is the company’s perspective for fiscal year 26?
We hope to grow faster than the industry. According to everyone’s profits and the guide, it seems not much better than last year and could be difficult to overcome last year’s number at the industry level. Since it is early in the cycle, and given uncertainty, we will probably have a better idea after Q1, but at this point, we believe that we can grow faster than the industry and that we can better possess the performance of the FY25.
