Shares of Birlasoft surged more than 6 percent on Tuesday after the company announced strong deal wins for the March quarter.
The management believes that growth in financial year 2024 will be muted due to the Invacare impact.
US-based medical devices manufacturer Invacare, which was one of Birlasoft's key clients, filed for bankruptcy protection and restructuring in February 2023.
Invacare contributed $14 million to Birlasoft's revenue in the first nine months of financial year 2023.
The digital and enterprise solutions and services provider reported US Dollar revenue of $149.1 million in the March quarter, compared to $148.4 million sequentially.
Excluding the impact of Invacare, US Dollar revenue grew 3.2 percent on a sequential basis. Excluding Invacare, constant currency growth stood at 3.1 percent.
Birlasoft is targeting to expand the EBITDA margin to 15-16 percent during the second half of the current financial year, with a target to achieve 16 percent margin next March.
EBITDA margin in the March quarter stood at 11.3 percent from 0.6 percent in December. The company also returned to profitability after a loss in December as it created provisions worth Rs 151 crore against receivables from Invacare.
Shares of Birlasoft are trading 7.4 percent higher at Rs 309. Today's surge has also taken the stock into positive territory on a year-to-date basis.
