IT services provider Birlasoft reported a 3.1 per cent quarter-on-quarter (QoQ) rise in revenue, reaching Rs 1,368.2 crore, while year-on-year (YoY) revenue grew by 4.5 per cent. This growth was driven by strong contributions from key sectors including Manufacturing, Banking, Financial Services, and Insurance (BFSI), as well as Energy & Utilities.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the September quarter stood at Rs 165 crore, reflecting a margin of 12.1 per cent. Profit after tax (PAT) was Rs 127.5 crore, translating to basic earnings per share (EPS) of Rs 4.59.
The Manufacturing sector emerged as the largest revenue driver, contributing 41.2 per cent of total revenue, up from 39.2 per cent in the previous quarter and 40.0 per cent YoY. The Lifesciences & Services segment followed, accounting for 24 per cent of revenue, showing growth from 21.4 per cent in the first quarter of FY25 and 20.6 per cent in the same period last year.
In a statement, 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 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.”
However, the BFSI segment saw a decline, contributing 21.1 per cent to overall revenue, down from 23.6 per cent in the previous quarter and 23.3 per cent in the same quarter last year. Despite this, Birlasoft’s broad sectoral growth, especially in Manufacturing and Lifesciences, underscored the company's strong performance in the quarter.
“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,” Guha added.
The company has announced an interim dividend of Rs 2.50 per share following a solid performance in the second quarter of fiscal year 2025.
