Revenue from the Research Solutions business declined to ₹108 crore at the end of the June quarter, from ₹118 crore during the same quarter last year.
The Research Solutions business contributed to 59% of MPS’ overall topline during the quarter.
MPS’ net profit increased by 40% from last year to ₹35 crore from ₹25 crore last year, but that was aided by a higher other income component.Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 21% due to lower expenses to ₹50 crore, while margin stood at 27% from 22.8% during the same quarter last year.
Additionally, the board of the company has considered and approved the scheme of amalgamation of ADI BPO Services Ltd., with itself. ADI BPO Services is engaged in the business of providing infrastructure facility management services. MPS has cited simplification of the group structure, as one of the rationale behind the merger.
The board has also given an in-principle approval for restructuring its wholly-owned subsidiary, MPS Europa AG, through the transfer of 100% equity shareholding in MPS Interactive Systems Ltd., a material wholly-owned subsidiary. MPS Europa AG will now become a step-down subsidiary from a direct one, post this transaction.
Shares of MPS are trading 16.5% lower at ₹2,424.2 after the results. The stock is still up 16% on a year-to-date basis.
