Bangalore: IT services and BPO (Business Process Outsourcing) firm Mphasis BFL today (Jul 9, 2004) reported a 81 per cent jump in net profits at Rs 35.38 crore for the first quarter ending June 2004, aided by foreign exchange gains and deferred income tax credit.

The Bangalore-based Mphasis had posted a net profit of Rs 19.49 crore during the corresponding period last fiscal, a company statement said in Bangalore.

Mphasis reported a revenue of Rs 175.78 crore during the first quarter, up by 35 per cent over Rs 130.22 crore posted in April June period last year.

"Profit margins have shown an upward trend despite salary increases this quarter. IT and BPO services revenues grew by 8.3 per cent and 15 per cent respectively on a sequential quarter-on-quarter basis," Mphasis chairman and CEO Jerry Rao said.

"Foreign exchange gains and deferred income tax have also contributed to the sharp increase in profits this quarter," he said.

Mphasis added 762 employees during the quarter, including 305 in software and 452 in BPO business to take the total strength to 7,040 professionals.

The firm added 11 new clients including 10 in IT services and one for BPO.

The Mphasis board also declared an interim dividend of Rs 1.50 per share for the year ending March 2005.