CorporateInFocus

Birlasoft Reported YoY Growth of 45% in FY22 PAT

Board announces buyback valued ₹3,900 million, at ₹ 500/- per share. Birlasoft will continue to focus on capability enhancements across all industry and service lines as we see broad-based demand growth and are prepared to harness it, says Dharmender Kapoor, Managing Director and Chief Executive Officer, Birlasoft.

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Birlasoft [BSE: 532400, NSE: BSOFT], a part of the USD 2.8 billion diversified CK Birla Group, reported its audited consolidated financial results for the fourth quarter and year ended March 31, 2022.

Dharmender Kapoor, Managing Director and Chief Executive Officer, Birlasoft, said, “We are pleased to report a well-rounded performance with a full year PAT increase of 45% and a 16% growth in the revenues. Our unwavering focus on clients has resulted in a multi-fold rise in the deal wins from the new customers, while our existing engagements continue to flourish at a healthy pace. Birlasoft will continue to focus on capability enhancements across all industry and service lines as we see broad-based demand growth and are prepared to harness it. Having set the foundation with robust performance across key metrics this year, we remain optimistic about our FY23.”

Key Financial highlights for Q4 FY22

in US $

 

·         Revenue at $ 146.4 M, up 2.1% QoQ & 18.8% YoY

·         EBITDA at $ 23.2 M, up 6.5% QoQ & 11.5% YoY

o   Margin at 15.8%, up 66 bps QoQ

·         PAT at $ 17.7 M, up 15.9% QoQ & 30.7% YoY

·         Signed deals of TCV $ 222 M during the quarter

in INR (₹)

 

·         Revenue at ₹ 11,014 million (M), up 2.8% QoQ and 22% YoY

·         EBITDA at ₹ 1,745 M, up 7.2% QoQ & 14.5% YoY

·         PAT at ₹ 1,329 M up 16.6% QoQ and up 34.3% YoY

 Key Financial highlights for FY22

in US $

 

·         Revenue at $ 555.2 M, up 15.8% YoY

·         EBITDA at $ 86.0 M, up 20.4% YoY

o   EBITDA margin at 15.5% vs 14.9% in FY21

·         PAT at $ 62.3 M; up 43.6% YoY

in INR (₹)

 

·         Revenue at ₹ 41,304 M, up 16.2% YoY

·         EBITDA at ₹ 6,401 M, up 21% YoY

o   Margin expansion of 60 bps YoY

·         PAT at ₹ 4,636 M, up 44.5% YoY

o   Basic EPS at Rs 16.63 per share 

Dividend

  • The board of directors declared a final dividend of ₹ 3.00/- per share of ₹ 2 each for the financial year 2021-22
    • The total dividend for the financial year 2021-22 at ₹ 4.50/- per share

Share Buyback

  • Board of directors approved the buyback of equity shares for an aggregate amount not exceeding ₹ 3,900/- M (“Buyback Size”) at a buyback price of ₹ 500/- per share. The Buyback is subject to approval by the shareholders.
  • Buyback Size accounts for ~25% of the eligible net-worth as on March 31, 2022 on standalone basis. The Company proposes to buyback 7.8 M shares under the Buyback, which amounts to 2.79% of the total shares outstanding as on date.
  • The Buyback will be undertaken through the tender offer route in accordance with the SEBI Buyback Regulations.
  • The buyback is part of the Company’s philosophy to deliver consistent returns to the shareholders. The buyback (in addition to the final dividend) is being implemented to distribute part of the surplus capital of the Company and is not expected to impact its organic and inorganic growth strategies and plans

Other highlights

  • Signed deals of TCV $ 696 M during the year
    • TCV new deal wins of $ 444 M and renewals of $ 252 M for FY22
  • Active Client Count at 296 in Q4 FY22
    • > $ 1 M customers at 80, up by 4 YoY
    • > $ 5 M customers at 25, up by 3 YoY
    • > $ 10 M customers at 13, up by 4 YoY
    • Revenue for Top 10 & Top 20 clients grew by 18.4% & 20.4% respectively in FY22
  • Cash & Cash equivalents of $ 161.6 M versus $ 153.1 M in FY 21; up $ 14 M YoY & $ 11.9 M QoQ
    • In ₹ terms, cash and cash equivalents at ₹ 12,250 M vs ₹ 11,189 M; up ₹ 1,060 M YoY
  • Q4 DSO at 58 days versus 56 days in Q4 FY21
  • Manpower strength of 12,204 as at 31st March 2022 versus 11,051 a year ago
    • Net addition of 1,153 professionals during the financial year and 259 during the quarter

Deal wins for the quarter

  • Selected by a leading global merchandise retailer for roll out of SAP S/4 HANA retail solution.
  • Chosen by a global healthcare major for J D Edwards execution, upgrade and additionally implementation of the data and analytics services.
  • Awarded by a leading transportation management company for streamlining and support Oracle based business-critical application managed services.
  • Selected by a leading US industrial equipment for infrastructure support services and roll out of Oracle Cloud Saas.
  • Selected by an asian farm equipment major for testing of SAP S/4 Hana services, application management services and support.
  • Selected by a leading US telecom major for its revenue application development management and support services.
  • Chosen by a leading global business process services company to integrate and modernize its mobility platform helping it to enhance customer experience by implementation of data and analytics services.
  • Awarded by a leading US infrastructure services provider for its application managed services and support of J D Edwards applications stack.
  • Chosed by a leading global healthcare major for application programming interface (API) and support services

Business Highlights & Recognition

  • Birlasoft named a Top 15 Sourcing Standout by ISG. Birlasoft was among the leading providers in the Booming 15 category globally, as well as for the Americas region based on Annual Contract Value (ACV) won over the last 12 months, according to the 1Q 2022 Global ISG Index™. This is the eighth consecutive time that Birlasoft has been featured across named categories by ISG.
  • Birlasoft is now Great Place to Work®, Certified in India. The certification heightens the commitment of how the organization helps career-focused individuals find their dream job and portrays the culture and values that drive the organization towards becoming a preferred employer of choice.
  • Birlasoft has been appraised at Maturity Level 5 of the CMMI Institute’s Capability Maturity Model Integration (CMMI)® 2.0 for CMMI-DEV and CMMI-SVC.

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