Birlasoft Q1: Net profits jumps 22%, while margins rise 170 bps QoQ
The attrition rate has eased in the June 2023 ended quarter to 18.8 percent versus 22.1 percent in the March 2023 ended quarter and 27.9 percent in June 2022 ended quarter.
The shares of Birlasoft rose 7 percent on July 27, immediately after it announced a strong set of financials for the first quarter of FY24.
The revenues in the first quarter rose 3 percent quarter on quarter to Rs 1,263 crore versus Rs 1,226 crore in the last quarter of FY23. The earnings before interest and tax (EBIT) is 18 percent higher sequentially at Rs 172 crore versus Rs 146 crore. The EBIT margin rose 170 bps to 13.6 percent versus 11.9 percent in March 2023 ended quarter. The net profits grew 22 percent to 137 crore from Rs 112 crore quarter on quarter.
The revenues in US Dollar terms is 3.1 percent higher quarter on quarter at $153.5 million and 3.4 percent higher year on year. In constant currency terms, revenue is up 2.7 percent quarter on quarter.
Angan Guha, Chief Executive Officer and Managing Director, Birlasoft said "our quarterly revenue has crossed the $150 million mark for the first time".
The attrition rate has eased in the June 2023 ended quarter to 18.8 percent versus 22.1 percent in the March 2023 ended quarter and 27.9 percent in June 2022 ended quarter. The total headcount is at 12,235, versus 12,193 in Q4FY23 and 12,565 in Q1FY23.
The growth was driven by BFSI and manufacturing among verticals and by both emerging tech and enterprise solutions including Infrastructure and ERP, among service lines. The revenues from Digital and Cloud is up 16.4 percent year on year and now contributes 31.5 percent of company's sales. The revenue from Top 5, Top 10 and Top 20 clients grew year on year by 12.2 percent, 8.9 percent and 4.6 percent respectively.
During this quarter, the company signed deals of total contract value (TCV) $146 million, which includes new deal wins of $80 million and renewals of $66 million.
Angan Guha,MD and CEO at Birlasoft in an interaction with CNBC-TV18 said he expects deal signings to improve from hereon, based on pipeline and client conversations. The second quarter of FY24 shall be better than the first quarter. The company is committed to achieve 16 percent margins by the fourth quarter of FY24 as there is optimism on BFSI and manufacturing verticals to grow.
The shares of Birlasoft are trading 4 percent higher at Rs 417 on July 28 morning, rising for the second consecutive day. The stock is 40 percent higher since the start of this calendar year.
First Published: Jul 27, 2023 1:30 PM IST
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