Birlasoft Ltd shares jumped 6.5% on Wednesday after the company reported strong growth in revenue and profit after tax (PAT) for the quarter that ended on September 30, 2023 (Q2FY24).
The global IT services provider reported strong revenue growth in the second quarter of the ongoing financial year (FY24) at 5.7% on a year-on-year (YoY) basis and 3.1% on a quarter-on-quarter (QoQ) basis, higher than the CNBC-TV18 estimates of 2.3% to 2.5%.
Its revenue in rupee terms grew 3.7% QoQ to ₹1,309.9 crore in the September quarter from ₹1,262.8 crore in the quarter ended on June 30, 2023. On a similar note, Birlasoft’s revenues in US Dollar terms grew 3.1% quarter on quarter at $158.3 million compared to $153.6 million in the previous quarter.
The company’s margins rose by 50 basis points (bps) in the September quarter despite the underlying impact of salary hikes for a month.
The earnings before interest and tax (EBIT) stood at ₹207.1 crore, up 7.25% sequentially as against ₹193.1 crore in the June quarter. The EBIT margin advanced 50 bps to 15.8% in Q2FY24 compared to 15.3% in the June 2023 ended quarter.
The profit after tax (PAT) grew 5.5% QoQ to ₹145.1 crore in the said quarter from ₹137.5 crore in the same period last year, which was adjusted for Invacare settlement of $2 million in the June quarter (Q1FY24).
During the quarter under focus, Birlasoft signed deals of a total contract value (TCV) of $271 million, which included new deal wins of $167 million.
The deal TCV signed shot up sharply by 86% sequentially and 63% YoY in Q2FY24, while the net new deals soared 110% QoQ and 21% on a yearly basis in the quarter.
(Edited by : Asmita Pant)
First Published: Nov 1, 2023 4:14 PM IST
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