Mphasis Ltd. on Tuesday, June 3, clarified that it continues to be a service provider in the FedEx ecosystem.
The company's clarification comes after Mint's report on Sunday, June 1, which stated that Mphasis is set to lose its FedEx business, which accounts of total revenue.
"We do not comment on speculative news articles or individual client relationships or contracts. However, for sake of clarity, Mphasis continues to be a service provider in the FedEx ecosystem. Other aspects of the article are purely speculative," Mphasis stated in its exchange filing on Tuesday.
The management reiterated that they stand by the outlook and assessment shared by them during the most recent earnings call.
The Mint report had stated that FedEx would end its agreement with Mphasis by the end of the year and had selected Accenture Plc to carry out majority of its IT work.
The report also added that FedEx is Mphasis' third-largest client after JPMorgan Chase & Co and brokerage firm Charles Schwab Corp.
As of the March quarter, Mphasis reported a 2.6% surge in its quarterly growth in revenue in US Dollar terms in constant currency basis. The growth was led by the BFS and TMT verticals.
The company's total deal wins at the end of the quarter stood at $390 million, which was the highest in seven quarters. The management maintained that the deal pipeline for them continues to remain robust.
Mphasis shares declined 6.7% on Monday, June 1, to hit an intraday low of ₹2,386.7 apiece. However, it later pared gains and ended the trade session 2.5% lower at ₹2,494.8 apiece. The stock has declined 12.6% this year, so far.
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The company's clarification comes after Mint's report on Sunday, June 1, which stated that Mphasis is set to lose its FedEx business, which accounts of total revenue.
"We do not comment on speculative news articles or individual client relationships or contracts. However, for sake of clarity, Mphasis continues to be a service provider in the FedEx ecosystem. Other aspects of the article are purely speculative," Mphasis stated in its exchange filing on Tuesday.
The management reiterated that they stand by the outlook and assessment shared by them during the most recent earnings call.
The Mint report had stated that FedEx would end its agreement with Mphasis by the end of the year and had selected Accenture Plc to carry out majority of its IT work.
The report also added that FedEx is Mphasis' third-largest client after JPMorgan Chase & Co and brokerage firm Charles Schwab Corp.
As of the March quarter, Mphasis reported a 2.6% surge in its quarterly growth in revenue in US Dollar terms in constant currency basis. The growth was led by the BFS and TMT verticals.
The company's total deal wins at the end of the quarter stood at $390 million, which was the highest in seven quarters. The management maintained that the deal pipeline for them continues to remain robust.
Mphasis shares declined 6.7% on Monday, June 1, to hit an intraday low of ₹2,386.7 apiece. However, it later pared gains and ended the trade session 2.5% lower at ₹2,494.8 apiece. The stock has declined 12.6% this year, so far.
Also Read: Transrail Lighting shares in focus after bagging new orders worth ₹534 crore
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