Birlasoft Q1 PAT declines 18% QoQ to Rs 56 cr

Birlasoft's consolidated net profit dropped 18.4% to Rs 56.34 crore on 0.83% rise in revenue from operations to Rs 914.63 crore in Q1 June 2020 over Q4 March 2020.

Profit before tax (PBT) fell 28.05% to Rs 79.76 crore in Q1 June 2020 as against Rs 110.86 crore in Q4 March 2020. Total tax expense for the quarter fell 44.01% at Rs 23.41 crore as against Rs 41.81 crore in Q4 March 2020. EBITDA for the quarter stood at Rs 113 crore, registering a 3.3% fall Q-o-Q (quarter-on-quarter) and 46.3% jump Y-o-Y (year-on-year). The result was declared after trading hours yesterday, 5 August 2020.

In terms of dollars, revenue was at $121.20 million, recording a 3.4% fall Q-o-Q and 8.5% jump Y-o-Y.

Birlasoft signed total contract value (TCV) deals of $179.70 million during the quarter. The active client count was at 356. Cash & cash equivalents stood at $108.80 million (Rs 822 crore) in Q1 June 2020 from $88.40 million in Q4 March 2020. Manpower strength of the company fell 3.50% to 9,908 as of 30 June 2020 on comparison to 10,268 in Q4 March 2020. Attrition rate fell to 16.5% in Q1 FY21 from 21.7% in Q1 FY20.

With regards to the COVID-19 pandemic, the outbreak has caused businesses to realize the need to accelerate digital transformation. Building resilience and agility through digital-led innovations is critical to their survival in the short and long term. Birlasoft also accelerated its development of digital solutions for its customers.

Commenting on Q1 performance, Dharmender Kapoor, the managing director (MD) and chief executive officer (CEO) of Birlasoft, has said that: "Our Q1 results were better than what we had expected at the beginning of this pandemic quarter. Our healthy deal wins of $179.70 million and good pipeline across verticals and horizontals, coupled with strong cash collections is a testimony to the trust shown in us. With the key objectives of ensuring our employees safety and partnering with our customers to stabilize their business and get them up to speed, we were quick in launching a few Digitalized COVID-19 solutions, like intelliOpen for employee health and safety, and Supplier Risk Radar, an Analytics solution to predict financial health of suppliers, to address our customer needs. Our focus will remain to work closely with our customers and partners and aid them in their initiatives to accelerate their success in the post-pandemic world."

Meanwhile, Chandrasekar Thyagarajan has been appointed as the chief financial officer (CFO) and key managerial personnel (KMP) of Birlasoft with effect from 21 August 2020.

Shares of Birlasoft surged 15.65% to Rs 144.85 on BSE. Birlasoft is a multi-shore business application global IT services provider with a presence in the United States, Europe, Asia-Pacific and India. It operates development centres in the United States, China, Poland and India.

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