Bengaluru, 26 July: Mid-tier IT services firm Mphasis posted a 2.1 per cent rise in its consolidated net profit at Rs 404 crore for the June quarter.

Its revenue from operations rose 4.6 per cent year-on-year basis to Rs 3,422 crore. On a constant currency basis, the topline grew 0.1 per cent over the previous quarter.

"We are seeing a steady improvement in client demand, and with the strength of our deal pipeline, we remain cautiously optimistic that this trend will continue to improve in our core markets,” CEO of Mphasis, Nitin Rakesh said in an exchange filing.

"As AI-enabled platforms are adopted at scale and infused across all deal archetypes and solutions; we continue to witness a strong growth momentum in Artificial Intelligence (AI) powered deals by leveraging our ‘Savings led Transformation’ theme," Rakesh added.

The total contract value (TCV) stood at $319 million during the first quarter, of which 84 per cent were in the new-generation services. Deal pipeline was up 17 per cent over the previous quarter.

Operating margin of the IT firm grew 10 basis points (bps) on a sequential basis and declined 40 bps to 15 per cent in the first quarter.

Among verticals, while BFSI (Banking and Financial Services) grew 1.1 per cent YoY to Rs 1,630 crore, while the Technology, Media, and Telecom segment grew over 11 per cent to Rs 5,490 crore.

During the first quarter, the company’s headcount went down by 1,019 employees to 31,645 people.

Mphasis’ share price has seen sound buying interest on Friday post announcement of its first quarter results.