Birlasoft rallies 19%, hits 52-week high as Q1 net profit rises 35% YoY

The company's revenue for the quarter under review came in at Rs 915 crore, up 17.7 per cent YoY.

Shares of Birlasoft advanced 19 per cent to hit a 52-week high of Rs 149.2 apiece on the BSE on Thursday after the company on Wednesday reported a 35 per cent year-on-year (YoY) rise in its net profit at Rs 56 crore for the quarter ended June (Q1FY20-21). On sequential basis, the numbers slipped 18.4 per cent. 

The company's revenue for the quarter under review came in at Rs 915 crore, up 0.8 per cent quarter-on-quarter (QoQ) and 17.7 per cent YoY. 

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 46.3 per cent YoY to Rs 113 crore. CLICK HERE TO READ PRESS RELEASE

During the quarter, the company signed deals worth $180 million. Attrition in the company declined from 21.7 per cent in Q1FY20 to 16.5 per cent in Q1FY21 - down 520 basis points (bps) YoY. 

“Our Q1 results were better than what we had expected at the beginning of this pandemic quarter. Our healthy deal wins of $ 179.7 M and good pipeline across verticals and horizontals, coupled with strong cash collections is a testimony to the trust shown in us," said Dharmender Kapoor, managing director and chief executive officer (CEO).

Analysts at Emkay Global Financial Services note that Birlasoft’s June quarter performance was strong across all operating parameters. "Client metrics continue to reflect the underlying positive thesis we have on the company, with the number of US$10mn+ clients increasing from 7 to 8 QoQ as the long-tail rationalisation continues. Top 10/20 client revenue performance continues to benefit from strong growth in the Lifesciences segment," the brokerage said in a result review note. 

It has maintained a "BUY" rating on the stock with the target price of Rs 150.

At 11:24 AM, the stock was trading 17 per cent higher at Rs 146.50 apiece on the BSE. In comparison, the S&P BSE Sensex was trading 0.6 per cent higher at 37,888 levels.