IT firm Birlasoft first quarter profit doubles to Rs 113.6 crore

Birlasoft, part of the USD 2 billion diversified C K Birla Group, on Wednesday said its consolidated net profit more than doubled to Rs 113.6 crore for the June 2021 quarter.

The company had posted a profit of Rs 56.3 crore for April-June 2020, Birlasoft said in a regulatory filing.

Revenue from operations grew 3.4 per cent to Rs 945.3 crore in the period under review from Rs 914.6 crore in the year-ago period.

"Our razor-sharp-focused strategy on Enterprise Solutions and Platforms have started to show results, leading to a robust pipeline as well as a base for sustainable growth and profitability...

"Our EBITDA margins have been stable despite the headwinds caused by India's second wave of the pandemic and increased cost of hiring due to demand-supply mismatch in the industry," Birlasoft Chief Executive Officer and MD Dharmender Kapoor said.

He added that the company is on track with its strategy to reach the billion-dollar revenue mark and continues to strive towards meeting its long-term goals.

Our consistent q-o-q growth, sustainable profitability, and continuous improvement in PAT (profit after tax) are a testament to our value creation for shareholders," he said.

Kapoor added that keeping customer centricity at the core, the company has reorganised and redefined its service lines to align with contemporary market demands and customer priorities in the hyper-digital and subscription economy.

"We are confident that the consolidation of our complementary service offerings under the three pillars of Business and Technology Transformation, Cloud and Base services, and Enterprise Solutions will allow us to be more agile and deepen our capabilities, thereby effectively addressing our customers' business needs," he said.

The company signed deals worth USD 153 million in total contract value (TCV) during the quarter.

In dollar terms, the company's net profit more than doubled to USD 15.4 million, while revenue was up 5.9 per cent to USD 128.4 million in the June 2021 quarter from the year-ago period.

Birlasoft's headcount stood at 11,508 at the end of the June 2021 quarter. The attrition rate was 16.5 per cent.