Birlasoft Q2FY25 Revenue up 3.1% QoQ and 4.5% YoY to ₹13,682 Mn Q2FY25 Revenue up 2.6% QoQ and 3.2% YoY in dollar terms

Birlasoft reported its unaudited consolidated financial results for the second quarter ended September 30, 2024. Birlasoft is part of the $3 bn CK Birla Group, which has over 35,000 employees and operates 52 manufacturing facilities globally.

Mr. 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, the Manufacturing, BFSI and E&U verticals, as well as the Digital & Data and ERP service lines. On a sequential basis, our Q2FY25 revenue grew by 2.6% in dollar terms. This was driven by ramp-ps 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 the recognitions of our capabilities by leading industry analysts. This positions us well to capitalize upon the opportunities presented by a recovery in the demand environment as and when that happens.”

Ms Kamini Shah, Chief Financial Officer, Birlasoft, said, “Our revenue during the quarter under review grew 4.5% year-on- year to Rs 13,682 million. We also maintained our robust track record of strong quarterly collections and consistent cashflow generation, resulting in a 29% rise year-on-year in cash and cash equivalents to Rs 18,587 Mn. 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.”

Key Financial highlights for Q2 FY25

Other operating highlights

• Growth during Q2FY25 driven by Manufacturing, Energy & Utilities (E&U) and BFSI among verticals, by Digital & Data and ERP among service lines, and by Americas among geographies
  • Manufacturing up 4.7%, E&U up 4.7% and BFSI up 1.4% QoQ while Lifesciences & Services (LSS) registered a sequential decline among verticals
  • Digital & Data up 6.6% and ERP up 4.3% QoQ while Infra registered a decline QoQ
  • The number of $1Mn+ clients increased from 88 to 89,$5Mn+ clients increased from 23 to 24 and $10Mn+ clients remained stable QoQ.
  • Revenue from Top 5, Top 10 and Top 20 clients grew YoY by 12.6%, 6.3% and 4.7% respectively
• Signed deals of TCV $ 136 M during the quarter with new deal wins TCV of $ 89 M and renewals of $ 47 M.
• Active Client Count at 261 in Q2FY25 (compared to 258 in Q1FY25 and 278 in Q2FY24).
• Cash & Cash equivalents of $221.8 M by end of Q2FY25 versus $229.7 M at end of Q1FY25. In rupee terms, cash and cash equivalents at ₹18,587 M at the end of Q2FY25 versus ₹19,143 M 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 ₹2.50 per share. The record date for this payout will be 31st October 2024.
• Workforce strength stood at 12,578 as on 30^th September 2024 and attrition was 11.8% during Q2FY25 (compared to 11.6% a quarter ago and 15.0% a year ago).
• During the quarter under review, Birlasoft achieved AWS Competency in Manufacturing and Industrial Consulting. This comes on the back of AWS Migration Consulting Competency attained by the company earlier, reflecting its deep expertise in delivering transformative digital solutions for the manufacturing and industrial sectors. 

Key deal wins for the quarter

• Entrusted by an existing med-tech client with a multi-year quality engineering program where we will leverage our AI-led testing automation platform.
• Secured an engagement with a large global customer in the LSS vertical centered on program management services across the client’s transformational programs.
• Won a multi-year deal covering both licenses and services to support a large P&C insurance company to maintain their Human Capital Management platform.