Birlasoft has released its unaudited consolidated financial results for the second quarter (Q2) ended September 30, 2024.

The company’s revenue stood at Rs 13,682 million, up 4.5 per cent year-on-year (YoY). Meanwhile, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 1,653 million with EBITDA margin at 12.1 per cent. Further, its profit after tax (PAT) marked at Rs 1,275 million translating to basic EPS (not annualised) of Rs 4.59. furthermore, cash and cash equivalents increased by 29.0 per cent YoY to Rs 18,587 million

Other operating highlights during the quarter include:

  • Growth during Q2 FY25 driven by manufacturing, energy and utilities (E&U) and banking, financial services and insurance (BFSI) among verticals, by digital and data and ERP among service lines, and by Americas among geographies
  • Manufacturing up 4.7 per cent, E&U up 4.7 per cent and BFSI up 1.4 per cent quarter-on-quarter (QoQ) while lifesciences and services (LSS) registered a sequential decline among verticals
  • Digital and data up 6.6 per cent and ERP up 4.3 per cent QoQ while Infra registered a decline QoQ
  • The number of more than $1 million clients increased from 88 to 89, more than $5 million clients increased from 23 to 24 and more than $10 million clients remained stable QoQ.
  • Revenue from top five, top ten and top 20 clients grew YoY by 12.6 per cent, 6.3 per cent and 4.7 per cent respectively.
  • Signed deals of TCV $ 136 million during the quarter with new deal wins TCV of $ 89 million and renewals of $ 47 million.
  • Active Client Count at 261 in Q2 FY25 (compared to 258 in Q1 FY25 and 278 in Q2 FY24).
  • Cash and cash equivalents at Rs 18,587 millio at the end of Q2 FY25 versus Rs 19,143 million at the end of the preceding quarter.
  • Q2 FY25 DSO at 58 days versus 52 days in Q2 FY24.
  • The Board has recommended an interim dividend of Rs 2.50 per share. The record date for this payout will be October 31, 2024.
  • Workforce strength stood at 12,578 as on September 30, 2024 and attrition was 11.8 per cent during Q2 FY25 (compared to 11.6 per cent a quarter ago and 15.0 per cent a year ago).

Commenting on the report, Angan Guha, chief executive officer and managing director, Birlasoft, said, “We are pleased to report a strong rebound in our revenue performance during the quarter under review with broad-based growth across our top accounts, manufacturing, BFSI and E&U verticals, as well as digital and data and ERP service lines. On a sequential basis, our Q2 FY25 revenue grew by 2.6 per cent in dollar terms. This was driven by ramp-ups in some projects that were earlier delayed, better account mining and incremental business from consolidation deals where we have gained wallet share. The investments that we have been making to enhance our tech and domain capabilities as well as partnerships, which we believe is key for future growth, have already begun to see some early results reflected in a noticeable increase in recognitions of our capabilities by leading industry analysts. This positions us well to capitalise upon the opportunities presented by a recovery in the demand environment as and when that happens.”

Meanwhile, Kamini Shah, chief financial officer, Birlasoft, said, “Our revenue during the quarter under review grew 4.5 per cent YoY to Rs 13,682 million. We also maintained our robust track record of strong quarterly collections and consistent cashflow generation, resulting in a 29 per cent rise YoY in cash and cash equivalents to Rs 18,587 million. Our DSO at 58 days remains healthy, enabling us to make the investments necessary to ensure that we have a differentiated value proposition in the marketplace. We expect margins to expand as these investments begin to pay-off.”