Bangalore: Software major Mphasis BFL Ltd on July 9 reported a net profit of Rs 19.49 crore during April to June 2003, an increase of 40.3 per cent over Rs 13.89 crore recorded during first quarter of last fiscal.

Revenues for the first quarter increased by 45 per cent at Rs 130.22 crore as against Rs 120.88 crore during April to June 2002, a company statement said.

"We have a good quarter across the group with healthy revenues and profits. Software margins have reduced as anticipated due to an increase in salaries, addition of people due to anticipated growth and an appreciation of the Indian Rupee," Mphasis BFL chairman and managing director Jerry Rao said.

He said Msource, the business process outsourcing (BPO) subsidiary, continues to ramp-up rapidly and is on a sustained growth track which places it on course for improved margins in the coming quarters.

The increase in software profits over last year is due to a 24 per cent rise in revenues, and reduction in selling, general and administrative expenses, Rao said, adding that the company hired 164 people in the current quarter in the software service business.

Mphasis added 12 new clients including a multinational insurance group, a large US retail organisation, a bank based in West Asia and a large Indian financial institution.

Msource recorded revenue of Rs 37.65 crore during the current quarter as against Rs 14.58 crore last year. Losses have reduced to Rs 0.75 crore as against Rs 2.98 crore, it said.

PTI