Mphasis Limited , a leading IT services and solutions provider, has reported impressive financial results for Q1, demonstrating strong growth and continued focus on artificial intelligence (AI) and next-generation technologies.

Financial Highlights

Mphasis delivered robust financial performance in Q1:

• Revenue reached $437.00 million, up 8.1% year-over-year in constant currency
• Achieved record Total Contract Value (TCV) wins of $760.00 million, including four large deals with three exceeding $100.00 million and one over $50.00 million
• Deal pipeline grew 84% year-over-year and 16% quarter-over-quarter, with 68% of the pipeline being AI-led
• Operating margin remained stable at 15.3%
• Earnings per share was INR 23.20
• Operating cash flow reached $52.00 million

Segment Performance

Mphasis reported revenue contributions from various segments:

AI-Driven Growth

The company's focus on AI-led solutions continues to yield significant results:

• 68% of the pipeline is AI-led
• Strong growth in AI-driven solutions across segments

Future Outlook

Mphasis expects to grow approximately 2X the industry growth rate, targeting operating margins within 14.75%-15.75%. With its strong quarterly performance and strategic focus on AI and next-generation technologies, Mphasis appears well-positioned to continue its growth trajectory and deliver value to its clients and shareholders in the coming quarters.

The company's record-breaking TCV wins and consistent year-over-year growth in revenue demonstrate its resilience and adaptability in a dynamic market environment. As Mphasis continues to expand its AI-led offerings and secure high-value contracts, it is likely to maintain its competitive edge in the IT services sector.

Mphasis Limited , a leading IT services and solutions provider, has announced a strategic move into the artificial intelligence (AI) sector through its wholly-owned subsidiary, Mphasis Corporation, USA. The subsidiary has acquired a 26% preferred stock stake in Aokah Inc., a Delaware-based corporation, for a total consideration of up to $4 million.

Investment Details

Aokah Inc., incorporated on January 7, 2023, is a newly established company focused on delivering Business Intelligence Platforms and additional Information Technology Services. The investment aligns with Mphasis's strategy to expand its capabilities in AI and data-driven solutions.

Strategic Objectives

The acquisition is aimed at achieving several key objectives:

1. Leveraging Artificial Intelligence to drive speed, intelligence, and efficiency
2. Building high-performing Global Capability Centers (GCCs) that foster innovation, resilience, and long-term business impact
3. Developing an AI-driven platform that integrates automation, data-driven insights, and ecosystem intelligence

Transaction Highlights

About Aokah Inc.

Aokah Inc. is a young company with a presence in both the USA and India. It specializes in:

• Business Intelligence Platforms
• Information Technology Solutions
• Computer Services

As a newly incorporated entity, Aokah Inc. currently has no reported turnover.

Impact on Mphasis

This investment represents a strategic move by Mphasis to strengthen its position in the AI and business intelligence sectors. By acquiring a stake in Aokah Inc., Mphasis aims to enhance its capabilities in developing AI-driven platforms and solutions, potentially leading to improved service offerings for its clients.

The company has clarified that this investment does not fall under related party transactions, and neither the promoter nor the promoter group has any interest in Aokah Inc.

As Mphasis continues to expand its portfolio and capabilities in emerging technologies, this investment in Aokah Inc. could play a significant role in shaping the company's future direction and service offerings in the AI and data analytics space.