Why did Mphasis rally so sharply on Friday in the stock markets?

Mphasis was up 12% on Friday after it reported healthy numbers for the Jun-21 quarter, largely on account of its focus on the cloud and cognitive services. While sequential revenues were up 6.8% at $362.9, the growth was slightly lower in constant currency terms. However, the EBIT margin fell marginally by 20 basis points to 15.9 sequentially while the profit after tax increased 7.2% sequentially to Rs.340 crore.

Mphasis reported total contract value or TCV of $505 million in direct business during the Jun-21 quarter out of which nearly 85% were in new-gen services. However, revenues from the DXC business declined but the markets were flattered by the overall results and the focus on the digital franchise.