Mphasis

3QFY2010 Result Update | IT
August 26, 2010

Mphasis BUY
CMP Rs623
Performance Highlights Target Price Rs872
(Rs cr) 3QFY10 2QFY10 %chg (qoq) 3QFY09 %chg (yoy) Investment Period 12 Months
Net Revenue 1,279 1,221 4.8 1,106 15.7
EBITDA Margin (%) 24.7 25.8 (1.1) 26.4 (1.7) Stock Info
PAT 271 267 1.5 229 18.3 Sector IT
Source: Company, Angel Research Market Cap (Rs cr) 13,075
For 3QFY2010, Mphasis reported top-line growth of 4.8% qoq to Rs1,279cr. The Beta 0.6
company reported mixed performance. Volume growth in the application and ITO 52 Week High / Low 796/545
segments stood robust, but pricing cut by HP stood steep at 9.6% for the
application segment. However, the restructuring exercise in the BPO segment, Avg. Daily Volume 163230
change in business mix and favorable price review in the ITO segment led to Face Value (Rs) 10
180bp and 470bp expansion in BPO and ITO margins, respectively, limiting the BSE Sensex 18,226
overall gross margin erosion to 110bp.
Nifty 5,478
Robust volume steals the show: Mphasis registered impressive volume growth of Reuters Code MBFL.BO
7.6% qoq in the application segment and ~20% qoq growth in the ITO segment
(including revenue from Fortify Infrastructure, which was acquired during the Bloomberg Code MPHL@IN
quarter). During the quarter, client addition stood high at 22, spanning across the
BFS, manufacturing and healthcare verticals. Net employee addition stood at
1,156, with majority of additions on the lateral side highlighting a strong demand Shareholding Pattern (%)
landscape. EBITDA margin declined by 110bp because of the new rate card Promoters 60.6
pricing model with HP, which brought down realisations by 9.6% in the
MF / Banks / Indian Fls 15.3
application business. Net profit increased to Rs271.3cr despite flat EBIT due to tax
write-back with retreatment of profits under Section 10AA related to SEZ. FII / NRIs / OCBs 18.3

Outlook and valuation: Mphasis has been consistently outperforming its peers on Indian Public / Others 5.8
the back of a strong pipeline from HP-EDS. Going ahead, we expect the company
to achieve steady volume growth of 4.5% CQGR over 3QFY2010–4QFY2012E
and stable pricing across its business segments. With the new rate card for its Abs. (%) 3m 1yr 3yr
application business in place, the gross margin will shift its orbit to the lower side, Sensex 11.2 15.6 26.4
but strong growth and robust profitability in the ITO segment will provide some
cushion. We expect EBIT margin to settle to 22.3% for FY2011E and 21.3% in Mphasis 0.5 8.9 124.7
FY2012E. PAT is expected to register a 12% CAGR over FY2009–12E on the back
of in-the-money hedges as well as yield from a strong cash position setting off
increased tax rates from 11% (FY2010) to 25% (FY2012E). We value Mphasis at
14.3x FY2012E EPS of Rs60.9 (at 32% discount to Infosys’ target PE of 21x) and
maintain our Buy rating on the stock with a Target Price of Rs872.
Key financials (Consolidated)
Y/E Oct. (Rs cr) FY2009 FY2010E FY2011E FY2012E
Net Sales 4,264 5,040 6,083 7,101
% chg 30.5 18.2 20.7 16.7
Net Profit 909 1,088 1,237 1,279
% chg 79.4 19.8 13.7 3.4
EBITDA Margin (%) 26.4 25.5 25.4 24.2
FDEPS (Rs) 43.4 51.8 58.9 60.9
P/E (x) 14.4 12.0 10.6 10.2 Srishti Anand
022 – 4040 3800 Ext: 345
P/BV (x) 5.6 3.8 2.8 2.2
srishti.anand@angeltrade.com
RoE (%) 52.1 37.7 30.5 24.1
RoCE (%) 58.3 56.2 49.0 43.6 Vibha Salvi
EV/Sales (x) 2.8 2.2 1.7 1.3 022 – 4040 3800 Ext: 329
EV/EBITDA (x) 10.7 8.6 6.7 5.5 vibhas.salvi@angeltrade.com

Source: Company, Angel Research

Please refer to important disclosures at the end of this report 1

Mphasis | 3QFY2010 Result Update

Exhibit 1: 3QFY2010 – Consolidated financial statement
% chg % chg
Y/E October (Rs cr) 3QFY2010 2QFY2010 3QFY2009 9MFY2010 9MFY2009 % chg
(qoq) (yoy)
Net Revenue 1,279 1,221 4.8 1,106 15.7 3,691 3,132 17.9
Cost of Revenue 860 808 6.5 699 23.1 2,447 1,966 24.5
Gross Profit 419 413 1.6 407 3.0 1,244 1,166 6.7
SG&A 103 98 5.8 115 (10.1) 300 333 (9.9)
EBITDA 316 315 0.3 292 8.2 944 833 13.4
Depreciation 40 40 0.4 51 (21.4) 126 155 (18.6)
Financial Expenses 0 0 (0) (1) (3)
Other Income / (Expense), Net 18 27 (35.7) 3 455.0 77 22 246.2
Income before Income Taxes 293 302 (3.1) 244 20.1 896 703 27.5
Income Taxes 22 35 (38.1) 15 48.9 89 39 128.4
Net Income 271 267 1.5 229 18.3 807 664 21.6
EPS (Rs) 12.9 12.7 1.7 10.9 18.1 38 32 21.2
Gross Profit Margin (%) 32.8 33.8 36.8 33.7 37.2
EBITDA Margin (%) 24.7 25.8 26.4 25.6 26.6
Net Profit Margin (%) 21.2 21.9 20.7 21.9 21.2

Volume-led growth continues…

Mphasis recorded 4.8% qoq and 15.7% yoy growth, generating overall revenue of
Rs1,279cr in 3QFY2010. This included forex impact of Rs21cr. In USD terms, the
company registered revenue of US $275.6mn, up 1.8% qoq (18.9% yoy).

Exhibit 2: Segment-wise revenue and gross margins
Particulars 3QFY2010 2QFY2010 3QFY2009 Chg (qoq) Chg (yoy)
Net Revenue Break-Up % %
Application Services 826 840 704 (1.7) 17.4
BPO Services 162 163 188 (0.5) (14.0)
ITO Services 291 218 214 33.8 36.3
Total 1,279 1,220 1,106 4.8 15.7
Revenue Mix (%) bp Bp
Application Services 64.6 68.8 63.7 (4.3) 0.9
BPO Services 12.6 13.3 17.0 (0.7) (4.4)
ITO Services 22.8 17.8 19.3 4.9 3.4
Gross Margin Break-Up (%) bp bp
Application Services 29.5 33.3 31.9 (3.8) (2.4)
BPO Services 14.7 12.9 21.1 1.8 (6.4)
ITO Services 39.5 34.8 44.1 4.7 (4.6)
Total 29.9 30.8 32.4 (0.9) (2.5)

August 26, 2010 2


Segment wise, the application business witnessed strong volume growth of 7.3%,
limiting the impact of steep price cuts of 9.6% under the new rate card pricing
model with HP. Also, favorable dollar rate aided revenue growth of 0.6%. Thus,
revenue from the application segment declined by 1.7 % qoq. The ITO business
grew at whopping 33.8% qoq on the back of strong ~20% volume growth. This
was coupled with 12% growth in pricing on account of improved mix with the
acquisition of Fortify Infrastructure (which added Rs27cr to the company’s revenue)
and because of one-time revenue of Rs10cr booked on account of achievement of
certain milestones targeted in the past. The BPO business witnessed a 0.5% qoq
(14% yoy) decline despite flat volume, which was mainly on account of a one-time
outage in one of the telecom clients’ facility. However, the BPO restructuring is on
course and is expected to yield better results in the coming quarters.

Mixed performance in terms of verticals

Growth was driven primarily by the BFS; technology and OEM; and healthcare
and pharma verticals. The company’s telecom vertical was affected by some
technical issues at the BPO client site, which resulted in breach of Service Level
Agreements and loss of revenue. The logistics, airlines and transportation vertical
remained flat, whereas the manufacturing and retail vertical posted laggard
performance, down 2% qoq.

Exhibit 3: Vertical mix
% chg % chg
3QFY2010 2QFY2010 3QFY2009
(qoq) (yoy)
BFS 540 465 456 16.1 18.3
Tech/OEMs 244 216 249 12.7 (2.4)
Telecom 114 168 117 (32.1) (2.3)
Manufacturing and Retail 179 183 143 (1.9) 25.2
Logistics, Airlines,
77 77 56 0.9 38.6
Transport
Healthcare and Pharma 104 79 83 32.7 25.9
Gross Revenue 1258 1187 1104 6.0 13.9
Adjust. from Hedging
21 34 2 (37.9) -
Reserve
Net Revenue 1279 1221 1106 4.8 15.7


Higher margins in ITO and BPO arrested overall margin erosion

Mphasis witnessed a 103bp qoq (403bp yoy) contraction in EBITDA margin in
3QFY2010. During the quarter, the company gave re-compensation payout and
fixed salary hikes, which resulted in a 160bp qoq (430bp yoy) increase in
manpower costs, thereby impacting the company’s margin. Segment wise, the
company’s pricing witnessed a steep cut of 9.6% in the application business,
pulling down the gross margin for the same by 380bp qoq. Overall, gross margin
erosion was limited to 103bp due to a positive effect of restructuring in the BPO
segment and cost optimisation witnessed in the ITO segment by switching to rate
card pricing from the earlier cost plus pricing with HP. Gross margin for the BPO
and ITO segments expanded by 180bp and 470bp qoq, respectively. Thus,
EBITDA margin slipped by only 110bp qoq despite higher selling and marketing

August 26, 2010 3


expenses on account of a one-time write-back in general and administration
expenses of Rs15cr, which contained further erosion in margin.

Improved wallet share in HP channel…

During the quarter, Mphasis witnessed 22 new client wins during the quarter, of
which the application segment won 20 and the BPO and ITO segments won one
each. These wins were witnessed mainly in the BFS, healthcare and manufacturing
verticals.

The HP channel is yielding fruits as reflected by higher-end migrations across
client pyramid. During the quarter, the company witnessed addition of one client
in over US $20mn category; three additions in over US $5mn category; and four
additions in over US $1mn category.

The direct channel witnessed migration of one client from over US $5mn category
to over US $1mn category in 3QFY2010.

Exhibit 4: Client wise revenue contribution
% chg % chg
Client-wise revenue (Rs cr) 3QFY2010 2QFY2010 3QFY2009
(qoq) (yoy)
Top Client Revenue 140.7 134.3 154.8 4.8 (9.1)
% Contribution 11.0 11.0 14.0
Top 5 Revenue 370.9 366.2 364.8 1.3 1.7
Top 10 Revenue 575.6 549.2 508.6 4.8 13.2
Top 20 Revenue 685.5 756.7 793.0 (9.4) (13.6)


Exhibit 5: HP and Non-HP client break-up
Addition Addition
No. of clients 3QFY2010 2QFY2010 3QFY2009
(qoq) (yoy)
> US $1mn Revenue 109 106 100 3 9
Direct Channel 34 35 38 (1) (4)
HP Channel 75 71 62 4 13

> US $5mn Revenue 39 37 31 2 8
Direct Channel 11 12 13 (1) (2)
HP Channel 28 25 18 3 10

> US $10mn Revenue 22 22 20 - 2
Direct Channel 9 9 10 - (1)
HP Channel 13 13 10 - 3

> US $20mn Revenue 13 11 8 2 5
Direct Channel 3 2 3 1 -
HP Channel 10 9 5 1 5


August 26, 2010 4


Hiring spree continues to brace strong pipeline…

Mphasis added 524 employees in the application segment, with 302 people
onsite indicating impending kick-off in some projects. The ITO segment also
added 753 people offshore, envisaging a strong demand pipeline, and 211
people onsite, largely related to absorption of Fortify Infrastructure’s manpower.

Exhibit 6: Employee matrices
Net add. Net add.
No. of employees 3QFY2010 2QFY2010 3QFY2009
(qoq) (yoy)
Application Services 14,578 14,054 11,369 524 3,209
BPO Services 16,424 16,756 16,391 (332) 33
ITO Services 7,273 6,309 4,993 964 2,280
Total 38,275 37,119 32,753 1,156 5,522


Investment arguments
HP business to stabilise, as price uncertainty is now over

During the quarter, Mphasis demonstrated strong volume growth, primarily
because of the BFS spending wave. The company’s growth has been phenomenal
as it continues to enjoy the benefits of offshoring by HP. The flip side to this
Master-level Service Agreement is the kind of pricing cut witnessed by the
company in 3QFY2010 in the application business. However, increased pricing in
the ITO segment came in as a surprise for the company in 3QFY2010. The major
pricing review overhang is done and dusted and, going forward, management
expects a stable pricing arrangement with HP given that the 50% of rate card
pricing will remain fixed and 50% will be market driven. In case of the ITO
segment, which is primarily HP-driven, the rate card has proved favorable and,
with the acquisition of Fortify, will help to manage cost due to its remote
infrastructure services. Thus, we believe HP’s strong parentage would continue to
support and provide increased business opportunities to Mphasis.

Focus on Non-HP business and M&As vital for growth

Management has appointed Boston Consulting Group for reviewing the overall
organisational performance and for enhancing the company’s growth trajectory in
the Non-HP business going forward. This initiative coupled with the effective rate
card implementation, which has witnessed cost optimisation, would certainly see
improved operational performance for Mphasis going ahead. Mphasis has strong
cash position of Rs1,487cr as on date, which would help it to go for acquisitions of
strategic fit in the size of US $50mn–$100mn annual revenue run rate.

August 26, 2010 5


Outlook and valuation

Mphasis has been consistently outperforming its peers on the back of a strong
pipeline from HP-EDS. We assume the company’s ITO business to be the major
beneficiary of HP’s restructuring exercise. Further, we expect the ITO business to
scale up due to the acquisition of Fortify Infrastructure, growing at a scorching
pace of 7% CQGR over 3QFY2010–4QFY2012E, followed by the application
business, which will likely grow at a 5% CQGR over the same period. Going
ahead, we expect the company to achieve steady volume growth of 4.5% CQGR,
with stable pricing across its business segments. With the new rate card in place
for its application business, gross margin will shift its orbit to the lower side, but
strong growth and robust profitability in the ITO segment will provide some
cushion. With fixed rate card in place for the ITO segment, cost pressures will play
out and EBIT margin will slip. Hence, we expect EBIT margin to settle to 22.3% for
FY2011E and FY2012E from 21.3% in FY2010. PAT is expected to increase at a
12% CAGR over FY2009–12E on the back of in-the-money hedges as well as yield
from a strong cash position setting off increased tax rates from 11% (FY2010) to
25% (FY2012E). We value the stock at 14.3x FY2012E EPS of Rs60.9 (at 32%
discount to Infosys’ target PE of 21x) and maintain our Buy rating on the stock with
a Target Price of Rs872.

Exhibit 7: Key assumptions
FY2011E FY2012E
Volume Growth (%) 19.6 16.7
Pricing Growth (%) 0.0 0.0
Revenue Growth - USD terms (%) 19.6 16.7
USD-INR Rate (realised) 46.5 46.5
Revenue Growth - INR terms (%) 20.7 16.7
EBITDA Margin (%) 25.5 24.2
Tax Rate (%) 17.0 25.0
EPS Growth (%) 13.7 3.4

Exhibit 8: Change in estimates
FY2011E FY2012E
Earlier Revised Earlier Revised
Var(%) Var(%)
estimates estimates estimates estimates
Net Revenues 5,990 6,083 1.5 7,043 7,101 0.8
EBITDA 1,511 1,546 2.3 1,795 1,717 (4.4)
PBT 1,377 1,493 8.4 1,649 1,706 3.4
Tax 234 256 9.2 297 426 43.7
PAT 1,143 1,237 8.3 1,352 1,279 (5.4)

We have changed our estimates for FY2011E from Rs54.5 to Rs59.0 and for
FY2012E from Rs64.5 to Rs61.0 as we expect strong volume growth in the ITO
segment and favorable price points to aid margins. In FY2012E, we believe strong
hiring with cost inflation and fixed rate card system will cease the cushion benefit
given by the ITO segment. Hence, profitability growth in FY2012E will be limited.

August 26, 2010 6


Exhibit 9: One-year forward P/E band

1,000
16x

800 14x

Share Price (Rs)
12x
600 10x

400

200

0

Oct-06

Oct-07

Oct-08

Oct-09
Feb-07

Feb-08

Feb-09

Feb-10
Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

Jun-10
Apr-07

Apr-08

Apr-09

Apr-10
Aug-06

Aug-07

Aug-08

Aug-09

Exhibit 10: Premium/Discount in Mphasis P/E versus Infosys P/E

20
10
0
(10)
(20)
(30)
(%)

(40)
(50)
(60)
(70)
(80)
Oct-06

Oct-07

Oct-08

Oct-09
Feb-07

Feb-08

Feb-09

Feb-10
Jun-07

Jun-08

Jun-09

Jun-10
Dec-06

Dec-07

Dec-08

Dec-09
Aug-06

Apr-07

Aug-07

Apr-08

Aug-08

Apr-09

Aug-09

Apr-10
Premium/Discount to Infosys Avg. Historical Discount to Infosys


Exhibit 11: Recommendation summary
Company Reco. CMP Tgt. price Upside FY2012E FY2012E FY2010-12E FY2012E FY2012E
(Rs) (Rs) (%) P/BV (x) P/E (x) EPS CAGR (%) RoCE (%) RoE (%)
3iInfotech Buy 61 100 63.3 0.7 3.7 208.9 15.6 18.6
Educomp Buy 567 734 29.5 2.8 12.3 26.9 21.0 22.3
HCL Tech Accumulate 412 440 6.8 3.0 14.1 10.3 27.9 23.2
Infosys Neutral 2,764 2,900 4.9 4.6 20.0 12.6 33.1 25.0
Infotech Enterprises Buy 155 192 23.8 1.3 8.0 12.1 18.1 17.0
Mphasis Buy 623 872 40.0 2.2 10.2 8.4 43.6 24.1
NIIT Buy 68 83 22.9 1.8 11.7 16.6 12.1 15.8
TCS Neutral 874 920 5.3 5.3 20.0 11.7 53.2 30.4
Tech Mahindra Buy 673 950 41.2 2.2 12.6 (0.5) 56.9 18.5
Wipro Buy 400 470 17.5 3.5 16.2 14.7 28.0 23.0

August 26, 2010 7


Profit & Loss Statement (Consolidated)
Y/E Oct (Rs cr) FY2009 FY2010E FY2011E FY2012E
Gross sales 4,264 5,040 6,083 7,101
Less: Excise duty - - - -
Net Sales 4,264 5,040 6,083 7,101
Other operating income - - - -
Total operating income 4,264 5,040 6,083 7,101
% chg 30.5 18.2 20.7 16.7
Total Expenditure 3,136 3,757 4,537 5,384
Cost of Services 682 590 679 761
SGA 272 417 507 561
Personnel 2,182 2,750 3,350 4,063
Other - - - -
EBITDA 1,127 1,283 1,546 1,717
% chg 68.6 13.8 20.5 11.1
(% of Net Sales) 26.4 25.5 25.4 24.2
Depreciation& Amortisation 202 170 188 206
EBIT 925 1,114 1,357 1,511
% chg 86.3 20.4 21.9 11.3
(% of Net Sales) 21.7 22.1 22.3 21.3
Interest & other Charges - - - -
Other Income 18 47 109 168
(% of PBT) 1.9 4.0 7.5 10.0
Recurring PBT 944 1,161 1,467 1,680
% chg 83.2 24.6 23.2 14.2
Extraordinary Expense/(Inc.) (29.2) (51.6) (25.9) (25.9)
PBT (reported) 973 1,212 1,493 1,706
Tax 64 124 256 426
(% of PBT) 6.6 10.2 17.1 25.0
PAT (reported) 909 1,088 1,237 1,279
Add: Share of earnings of associate - - - -
Less: Minority interest (MI) - - - -
Prior period items - - - -
PAT after MI (reported) 909 1,088 1,237 1,279
ADJ. PAT 879 1,037 1,211 1,253
% chg 79.4 19.8 13.7 3.4
(% of Net Sales) 21.3 21.6 20.3 18.0
Basic EPS (Rs) 43.4 51.8 58.9 60.9
Fully Diluted EPS (Rs) 43.4 51.8 58.9 60.9
% chg 79.4 19.8 13.7 3.4

August 26, 2010 8


Balance Sheet (Consolidated)
SOURCES OF FUNDS
Equity Share Capital 210 210 210 210
Preference Capital - - - -
Reserves& Surplus 2,136 3,223 4,461 5,740
Shareholders’ Funds 2,345 3,433 4,671 5,950
Minority Interest - - - -
Total Loans 3 48 48 48
Deferred Tax Liability (69) (89) (90) (90)
Total Liabilities 2,279 3,391 4,628 5,908
APPLICATION OF FUNDS
Gross Block 1,004 1,014 1,314 1,614
Less: Acc. Depreciation 688 789 977 1,183
Net Block 316 225 337 431
Capital Work-in-Progress 13 9 9 9
Goodwill 295 295 300 300
Investments 761 1,500 1,950 2,535
Current Assets 1,809 2,466 3,141 3,803
Cash 179 539 814 1,067
Loans & Advances 724 864 1,043 1,238
Other 907 1,063 1,283 1,498
Current liabilities 915 1,103 1,108 1,171
Net Current Assets 894 1,363 2,033 2,632
Mis. Exp. not written off - - - -
Total Assets 2,279 3,391 4,628 5,908

August 26, 2010 9


Cash Flow Statement (Consolidated)
Profit before tax 973 1,212 1,493 1,706
Depreciation 202 170 188 206
Change in Working Capital 62 133 (277) (224)
Less: Other income 21 47 109 168
Direct taxes paid (165) (124) (256) (426)
Cash Flow from Operations 1,052 1,343 1,039 1,093
(Inc) / Dec in Fixed Assets (138) (250) (300) (300)
(Inc) / Dec in Investments (787) (739) (450) (585)
(Inc) / Dec in loans and advances - - - -
Other income 18 47 109 168
Cash Flow from Investing (906) (942) (641) (717)
Issue of Equity 8 - - -
Inc./(Dec.) in loans (2) 44 - -
Dividend Paid (Incl. Tax) (49) 86 123 123
Others 2
Cash Flow from Financing (40) (42) (123) (123)
Inc./(Dec.) in Cash 105 360 275 253
Opening Cash balances 73 179 539 814
Closing Cash balances 179 539 814 1,067

August 26, 2010 10


Key Ratios
Y/E Oct FY2009 FY2010E FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 14.4 12.0 10.6 10.2
P/CEPS 11.8 10.4 9.2 8.8
P/BV 5.6 3.8 2.8 2.2
Dividend yield (%) 0.6 0.6 0.8 0.8
EV/Sales 2.8 2.2 1.7 1.3
EV/EBITDA 10.7 8.6 6.7 5.5
EV / Total Assets 3.8 2.5 1.8 1.3
Per Share Data (Rs)
EPS (Basic) 43.4 51.8 58.9 60.9
EPS (fully diluted) 43.4 51.8 58.9 60.9
Cash EPS 53.0 59.9 67.9 70.7
DPS 3.5 3.5 5.0 5.0
Book Value 111.9 163.6 222.5 283.5
DuPont Analysis
EBIT margin 21.7 22.1 22.3 21.3
Tax retention ratio 93.4 89.8 82.9 75.0
Asset turnover (x) 1.9 2.1 2.0 2.0
ROIC (Post-tax) 38.3 40.7 37.8 32.6
Cost of Debt (Post Tax) 0.0 0.0 0.0 0.0
Leverage (x) 0.0 0.0 0.0 0.0
Operating ROE 38.4 41.3 38.2 32.9
Returns (%)
ROCE (Pre-tax) 58.3 56.2 49.0 43.6
Angel ROIC (Pre-tax) 58.3 56.2 49.0 43.6
ROE 52.1 37.7 30.5 24.1
Turnover ratios (x)
Asset Turnover (Gross Block) 4.2 5.0 4.6 4.4
Inventory / Sales (days) - - - -
Receivables (days) 78 77 77 77
Payables (days) 18 14 12 12
Working capital cycle (ex-
67 66 79 85
cash) (days)
Solvency ratios (x)
Net debt to equity - - - -
Net debt to EBITDA - - - -
Interest Coverage (EBIT /
- - - -
Interest)

August 26, 2010 11


Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

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Disclosure of Interest Statement Mphasis
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock Yes
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No

Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)

August 26, 2010 12

Mphasis

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Mphasis