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Mphasis CEO Nitin Rakesh: Have ample headroom for growth within Blackstone portfolio

Updated : June 03, 2019 02:55 PM IST

Mphasis posted largely in-line earnings in its Q4 with consolidated revenues up 3.2 percent on quarter-on-quarter (QoQ) basis. Nitin Rakesh, Mphasis CEO, spoke to CNBC-TV18 about the numbers and gave his outlook for the future.

Talking about HP/DXC business, Rakesh said: “We think there is growth opportunity in this segment. So from capability and opportunity perspective there is a lot to do.

"However, given the fact that we are coming off of two very strong years of growth. Our expectation and aspiration is to make sure that that segment grows at least at market,” he added.

On Blackstone portfolio front, Rakesh said: “We still think there is ample headroom for growth given the size of the opportunity, size of the company and the ever increasing number of businesses that Blackstone owns.

“As long as there is headroom for growth from this opportunity, we do expect DXC to continue to contribute to the correct core growth,” Rakesh added.

He further said that the US rate increase depressed the company's mortgage business.

Mphasis on CNBC-TV18

- Aspire to grow in double digit if industry growth is similar to FY19 at 7-9 percent

- HP/DXC growth has been above 20 percent for the last 2 years

- Base effect will kick in for HP/DXC business in FY20

- Aspire to grow HP/DXC business in-line with the market

- US rate increase depressed the company's mortgage business

- Confident about sequential growth in digital risk for the next 2-3 years

- Maintain FY20 EBIT margin guidance of 15-17 percent

- Delivered 100 bps margin expansion in FY19

- Will hedge gains if rupee stays where it is
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