Birlasoft skids after Q2 PAT slides 5% QoQ to Rs 115 cr

Birlasoft fell 2.14% to Rs 276.05 after the company's consolidated net profit declined 4.7% to Rs 115.05 crore despite of 3.26% rise in revenue from operations to Rs 1,192.08 crore in Q2 FY23 over Q1 FY23.

Compared with Q2 FY22, the company's net profit and revenue are higher by 11.6% and 17.8%, respectively.

Consolidated profit before tax in Q2 FY23 stood at Rs 147.16 crore, down 9.37% quarter on quarter (QoQ) but up 6.5% YoY.

EBITDA was Rs 176.4 crore in quarter ended 30 September 2022, registering a growth of 3.9% QoQ 16.2% YoY. EBITDA margin stood at 14.8% in Q2 FY23, up 9 bps QoQ and down 21 bps YoY.

In dollar terms, the company's revenue for Q1 FY23 was $148.8 million, up 0.1% QoQ and up 8.7% YoY.

The company said it signed deals of total contract value (TCV) $166 million during the quarter. TCV of new deal wins was $138 million and renewals amounted to $28 million for Q2 FY23.

Active Client Count at 301 in Q2 FY23. Of this, count of 'more than $1 million' customers was 76 (remained constant in Q2 FY23) and count of 'more than $5 million' customers was 27 (up 7% YoY). Revenue from Top 5, Top 10 and Top 20 clients grew YoY by 13.8%, 13.4% and 13.1% respectively.

Manpower strength was 12,758 as on 30 September 2022, representing a net addition of 693 professionals YoY and and 193 sequentially. Attrition last twelve month (LTM) was 27.4% in Q2 FY23 as against 27.9% in Q1 FY23.

Meanwhile, the company's board has approved interim dividend of Rs 1.50 per equity share for the financial year 2022-23, to be paid to the members of the company within 30 days from the declaration by the board.

Dharmender Kapoor, managing director and chief executive officer, Birlasoft, said, "Our steady performance continued in the second quarter with a Rs revenue growth of 17.8% YoY, led by our CMT and BFSI verticals. New deal momentum continued to be healthy with a growth of 32.6% YoY and 22.8% sequentially."

He further added, "We witnessed broad based YoY growth across client buckets as they continue to drive our performance. We continue to see good traction in our Business and Technology Transformation services, up 17.5% YoY, as we leverage our expertise in driving digital transformation for our clients. As technology investments continue to be part of our imperatives globally, we are well positioned to help clients achieve their digital transformation objectives."

Birlasoft, part of the CK Birla Group, provides digital and information technology consulting, services, solutions and products for organizations across industries, worldwide.

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