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Birlasoft Q1 profit at Rs 42 cr

Birlasoft, a part of the USD 2 billion diversified C K Birla Group, on Wednesday reported

36.7 per cent fall in consolidated net profit for June quarter at Rs 41.8 crore as compared to the preceding three-month period.

The company posted a profit of Rs 66.1 crore in January-March 2019. Revenue from operations declined 1.4 per cent to Rs 777.2 crore in the period under review from Rs 788.3 crore in March quarter.

Last year, Birlasoft and KPIT Technologies had announced that they will merge and then split into two publicly-traded companies to create two specialised IT players.

After the demerger, the engineering business was re-listed on the BSE as KPIT Technologies, while Birlasoft is now positioned as an enterprise digital and IT services company.

Birlasoft Managing Director and CEO Dharmender Kapoor explained that the decline in net profit was on account of changes in some tax structures, along with the impact of a one-time gain seen in March quarter.

The June quarter profit numbers are also adjusted for merger and integration related expenses.

"Our P&L is strong and going ahead, revenue growth should be sustainable. We are seeing growth across sectors...We have a client base of nearly 400 customers, most of them in the enterprise segment. Our clients continue to show confidence in us, reflected in our healthy deal wins while we maintain stable profitability," he added.

Birlasoft's headcount stood at 10,085 at the end of June 2019. The attrition (on the basis of last 12 months ) was at 21.7 per cent.