homeearnings NewsBirlasoft CEO says deal pipeline better than ever, aim to grow above industry average
Birlasoft CEO says deal pipeline better than ever, aim to grow above industry average
Angan Guha, the Managing Director and CEO said the Pune-based global IT services provider aspires to hit $1 billion but cannot provide a timeline given the current economic uncertainties.
Angan Guha, the Managing Director and CEO of Pune-based global IT services provider Birlasoft, aspires to grow the company faster than the industry average in the medium term. In a conversation with CNBC-TV18, he said while the deal wins may have been softer recently due to decision-making delays, the overall pipeline is stronger than ever.
Guha emphasised the importance of consistent quarter-on-quarter execution to drive growth, stating, "We want to get to a billion dollars, but the macroeconomic situation has not improved. It is pretty much the same. So we don't have a timeframe in mind."
Over the past nine months, Birlasoft has secured approximately $633 million worth of total contract value (TCV) deals, marking a 10% increase compared to the previous year.
Birlasoft's revenue for the third quarter (Q3FY24) rose 1.9% sequentially to $161.3 million from $158.3 million. Constant currency revenue grew 1.8% QoQ and 7.9% year-on-year (YoY). Profit was up 11% at ₹161 crore from ₹145. crore in the previous quarter. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin was at 16%, marginally higher than 15.8% in the second quarter.
The company is focused on maintaining its margins within a narrow band while continuing to invest in key areas of its business. Guha, however, refrained from providing any margin guidance.
The performance of the BFSI (Banking, Financial Services, and Insurance) segment during the third quarter was affected by furloughs, he noted, However, he anticipates a rebound in the upcoming quarter.
Birlasoft has a market capitalisation of ₹22,608 crore. The stock has gained 177% over the past year.
(Edited by : Shweta Mungre)
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