Birlasoft Q4FY24: 60% YoY Growth In Q4 Profits
The company's profit growth during this period was primarily driven by an increase in non-core income, improved operating margins and reduced employee expenses
Birlasoft, part of the C K Birla group, in the fourth quarter of the fiscal year 2024 reported that its net profits increased by 60.5 per cent year-on-year (YoY) to Rs 180 crore, an increase of 11.8 per cent sequentially.
The company's profit growth during this period was primarily driven by an increase in non-core income, improved operating margins and reduced employee expenses. The IT firm's operating margins saw an uptick of 33 basis points, settling at 14.7 per cent by the quarter's end.
Revenue for the Pune-based firm also rose to Rs 1,363 crore in the March quarter, a 1.5 per cent sequential increase. Over the full fiscal year, Birlasoft's revenue climbed by 10.1 per cent, totaling Rs 5,278 crore.
A significant aspect of Birlasoft's recent financial narrative is its successful management post the bankruptcy declaration by Invacare, a major US client. Excluding Invacare's impact, the firm reported a 9.1 per cent rise in revenues on a constant currency basis for the fiscal year. During the fourth quarter, revenues edged up by 1.6 per cent sequentially.
Angan Guha, CEO and MD of Birlasoft, commented on the company’s strategic initiatives, including its investment in emerging technologies like Generative AI, positioning it as an early adopter in the IT sector. However, he cautioned about the near-term outlook, which could be influenced by shifts in customer priorities impacting spending patterns.
The company saw decent growth across several key service lines and verticals during the quarter. The ERP and Infrastructure sectors led the charge, with notable contributions from the BFSI, Energy & Utilities, and Manufacturing sectors, which saw increases of 4.4 per cent, 4 per cent, and 3.6 per cent quarter-on-quarter (QoQ), respectively.
In terms of contracts, Birlasoft signed deals worth a total contract value of USD 240 million, including USD 107 million in new deals and USD 133 million in renewals, reflecting strong market confidence in its service offerings. The company also recommended a final dividend of Rs 4 per share.
Operational metrics such as a slight decrease in attrition, from 12.6 per cent in the December quarter to 12.4 per cent in the latest quarter, and a marginal dip in utilisation rates to 86.3 per cent, were reported. Birlasoft ended the fiscal year with a workforce of 12,595, an addition of 239 employees.
