Mphasis Limited, a leading IT services and solutions provider, has announced the approval of employee stock benefits through its ESOP Compensation Committee. The company has granted a total of 25,000 stock options and 7,500 Restricted Stock Units (RSUs) to identified employees of the company and its subsidiaries.

Stock Options Grant Details

The company has granted 25,000 stock options under the Employee Stock Option Plan 2016 (ESOP 2016) with the following terms:

Each option entitles the holder to apply for one equity share of the company with a face value of ₹10.00.

Restricted Stock Units (RSUs) Grant Details

Additionally, 7,500 RSUs have been granted under the Restricted Stock Units Plan 2021 (RSU Plan 2021) with the following terms:

The RSU plan includes automatic exercise provisions, particularly for US employees subject to Internal Revenue Code requirements. Non-US employees have the option to elect either automatic exercise or exercise by notice.

Implementation and Governance

Both the stock options and RSUs will be administered through employee trusts - the Mphasis Employees Equity Reward Trust for stock options and the Mphasis Employees Benefit Trust for RSUs. The shares arising from the exercise of these stock benefits are proposed to be allotted through these trusts.

The grants are subject to the provisions of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and are governed by their respective plans, which were submitted to the stock exchanges at the time of obtaining in-principle approval.

This move by Mphasis aligns with industry practices of offering equity-based compensation to attract and retain talent, potentially fostering a sense of ownership among employees and aligning their interests with those of the company's shareholders.

Investors and stakeholders may view this development as a positive step towards employee retention and motivation, which could contribute to the company's long-term growth and performance in the competitive IT services sector.

Mphasis , a leading IT services and solutions provider, has reported its highest quarterly revenue to date, marking significant growth and strategic advancements in the artificial intelligence (AI) domain.

Record-Breaking Financial Performance

Mphasis delivered an impressive financial performance in Q2:

The company's direct business contributed significantly, accounting for 97.5% of overall revenue. Notably, the Banking and Financial Services (BFS) vertical demonstrated robust growth of 13.8% year-over-year, despite the ATM business ramp-down.

Strong Deal Momentum

Mphasis continues to show strong momentum in deal wins:

• Six large deals secured in Q2, including one exceeding $100.00 million from a new BFS client
• First half TCV wins of approximately $1.30 billion, surpassing full-year FY25 TCV wins
• Last 12 months TCV reaching over $2.00 billion

AI-Driven Growth and Innovation

The company is leveraging AI to drive growth and innovation:

• Launched MphasisNeoIP, an AI platform integrating multiple solutions for enterprise transformation
• Pipeline reached record levels, growing 97% year-over-year
• 69% of the pipeline is AI-led, indicating a strong focus on next-generation technologies

Future Outlook

Mphasis has set ambitious targets for the future:

• Expects growth to be greater than 2x industry growth
• Targeting EBIT margin in the 14.75% to 15.75% band

The company's strong performance, coupled with its focus on AI-driven solutions and robust deal pipeline, positions it well for continued growth in the competitive IT services landscape.