38. MPHASIS BFL: Cruising Along

After the merger of Santa Monica-based MphasiS with
Bangalore-based BFL, MphasiS BFL (erstwhile BFL Software) really found its fins and swam hard and strong. This IT services and consulting company grew by a healthy 138%–from Rs 124 crore to Rs 295
crore. The company’s primary money-earning vertical was financial services, which accounted for 44.5% of the revenues. Retail, logistics and transportation accounted for another 29%, while 20% came from the technology and telecom sectors.

In 1999-00, 89% of revenues had come from the US. That came down to 70% last fiscal, with Europe accounting for 14.6%. Over 61% came from on-site development while offshore accounted for the rest. Mphasis has been increasing its fixed-bid projects, with close to 40% of export revenues coming from fixed-cost deals. The company also started a subsidiary called
MsourcE, focussing on help-desks and call centers. The board has also decided to accept a Rs 45-crore investment offer from Chrysalis at Rs 350 per share.