Birlasoft surges 12%, hits new high after pact with Regulativ.ai

The CK Birla Group company has partnered with 'Regulativ.ai' to co-develop a new AI/ML-based cyber-regulatory reporting platform

Birlasoft shares surged 12 per cent to hit a new high of Rs 421 on the BSE in intra-day trade on Wednesday after the CK Birla Group company partnered with 'Regulativ.ai', to co-develop a new AI/ML-based cyber-regulatory reporting platform.

Digital transformation has unleashed a high volume of cyber threats, making cybersecurity and compliance a top priority for CXOs, and making it critical for businesses to ensure their cyber-regulatory compliance roadmap is in place, Birlasoft said in a press release.

In alignment with Birlasoft’s strategy to ensure customers realize utmost value from their digital transformation initiatives, the co-developed platform will help regulated enterprises gain a deeper understanding of their cyber regulatory compliance risks and provide them with actionable reports to mitigate risks and ensure compliance.

Birlasoft believes that the Regulativ.ai platform fits well with the company’s focus to grow the banking, financial services, and insurance segments, where cybersecurity is a key focus. In addition, as organizations across other regulated industries accelerate their digital transformation, cybersecurity becomes fundamental for future business resiliency.

In the past one month, the stock price of the global enterprise digital and IT services company has rallied 68 per cent, as compared to 6 per cent gain in the S&P BSE Sensex. The company reported a 43.3 per cent rise in consolidated net profit to Rs 98.9 crore for the quarter ended March (Q4FY21). It had posted a profit of Rs 69 crore for the corresponding period a year ago. The company, however, reported a marginal decline in revenue from operations to Rs 902.8 crore in Q4, from Rs 907 crore in the year-ago period. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin improved 401 basis points (bps) at 16.9 per cent.

The company’s management said the all-round improvement on all operating metrics is very reassuring and sets the foundation for continued momentum into FY22. With due focus on a robust customer centric strategy to win more transformational, multi-services and long-term deals, combined with operational rigor, the management is confident of accelerated growth in FY22 and beyond.

At 09:39 am, the stock was up 6 per cent at Rs 400 on the BSE, as compared to 0.20 per cent rise in the S&P BSE Sensex. A combined 4.2 million shares have changed hands on the counter n the NSE and BSE, so far.