High mortgage and BFSI exposure leading to third consecutive decline in quarterly revenues; downgrade to SELL
Mphasis reported a miss in revenue, which fell -3.5% QoQ CC, -3.4% QoQ USD (I-Sec: -0.9%, cons: 0.01% USD) and -8.4% YoY CC. The revenue decline was due to weakness in banking and capital markets (BCM, -8.8% QoQ, -14.8% YoY). BCM ex-mortgage was down 8.7% QoQ given delayed decision-making across large banks and weakness in regional banks.