3 Bonus, Rs 50/Sh Payout, Bangalore-Based IT Firm Makes Big AI Announcement Ahead Of Q4, Dividends

Bangalore-based technology services provider, Mphasis has announced a multi-year global Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). The announcement comes ahead of Q4 results for FY24, and fresh dividend recommendations later in the month. Accordingly, Mphasis share will be in focus this week.

This collaboration marks a significant milestone as Mphasis establishes the Gen AI Foundry, led by Mphasis.AI, a dedicated business unit focusing on artificial intelligence (AI) solutions, AI use case assessments, consulting, and business transformation.

As per the regulatory filing on April 14, the Gen AI Foundry will serve as a dynamic platform for modelling industry use cases and developing proof of concepts (POCs) initially within the financial services Industry, with plans to expand across other sectors. This virtual forum will offer clients the opportunity to experience demos and POCs either at the Mphasis Experience Centre in NYC or the AWS Executive Briefing Center (EBC) in NYC, providing a showcase of generative AI solutions tailored to the client's needs and objectives.

Nitin Rakesh, Chief Executive Officer, and Managing Director of Mphasis said, "Our collaboration with AWS marks a significant leap forward in Mphasis's journey towards delivering cutting-edge solutions in the area of cloud and cognitive services. The Gen AI Foundry for Financial Services, led by Mphasis.AI, is our commitment to accelerating AI adoption and business modernization for our clients."

He further said, "By harnessing the power of AWS's generative AI and data services, we are poised to set new benchmarks in the financial services industry. This initiative reinforces our vision to be the driver of innovation for global enterprises, providing scalable and sustainable technology solutions."

Also, the Gen AI Foundry aligns with Mphasis' vision to fully integrate as a trusted provider to the financial services space, with targeted offerings for banks ranking among the Fortune 100, brokerage, and insurance firms.

The use cases will focus on applications critical industry applications, such as generative AI for core platform modernization, contract management for banks, intelligent document processing for new banking accounts, mortgage processing, in claims processing for insurance carriers, and for investigating financial crime, it added.

Mphasis has announced that its board meeting will be held on April 25 to consider financial statements for the period ending March 31, 2024, along with dividend recommendations if any.

As per Trendlyne data, Mphasis has so far delivered up to 26 dividends since August 2001. In 2023, the company paid its highest dividend of Rs 50 per share.

On the current market price, Mphasis has a dividend yield of 2.04%.

Apart from this, Mphasis also has a healthy record of rewarding investors with bonus shares. Mphasis has turned ex-bonus in July 2023, May 2004, and November 2005 for bonus issues of 1:1 each.

On BSE, Mphasis' share price stood at Rs 2445.15 apiece, flat on April 12 with a market cap of Rs 46,212.85 crore. In a year, the stock has gained by 41%, while in 5 years, the stock has become a multibagger with gains of up to a whopping 155%.

Mphasis' purpose is to be the "Driver in Driverless Car" for Global Enterprises by applying next-generation design, architecture and engineering services, to deliver scalable and sustainable software and technology solutions.