MphasiS, the Indian services subsidiary of Hewlett-Packard, on Wednesday reported strong growth in revenue and profit, citing increased business from existing and new clients.
The company reported that revenue grew by 52.3 percent in the quarter ended April 30 to 10.5 billion rupees (US$203 million at the exchange rate on the last day of the quarter). Profits also increased by 219 percent in the quarter to 2.3 billion rupees from 703 million rupees in the same quarter last year.
The depreciation of the Indian rupee against the U.S. dollar, and improved billing rates for services delivered on-site to customers also helped boost the company's revenue, MphasiS said.
The company added 14 clients in the quarter, including a large airline in the U.S. It added 3,822 staff taking the number of employees at the end of April to 33,810.
MphasiS, a company listed on Indian stock exchanges, became a subsidiary of Electronic Data Systems (EDS) in June 2006, after EDS acquired a majority stake in the Indian outsourcer. The company is now a subsidiary of HP, after parent company EDS became a wholly-owned subsidiary of HP in August last year.
Multinational services companies like IBM have set up or acquired subsidiaries in India to take advantage of the country's abundant and relatively low cost staff.
About 45 percent of MphasiS' revenue in the quarter was obtained through HP and subsidiary EDS under a master service agreement with MphasiS, the management said in a discussion and analysis of its risks and concerns. The company plans to increase the volume of business it gets from clients through HP and EDS.