Birlasoft’s Q2 Revenue Zoomed Up 18% YoY

Birlasoft, a part of the USD 2.8 billion diversified CK Birla Group, reported its unaudited consolidated financial results for the second quarter ended September 30, 2022.

Dharmender Kapoor, Managing Director and Chief Executive Officer, Birlasoft, said, “Our steady performance continued in the second quarter with a ₹ revenue growth of 17.8% YoY, led by our CMT and BFSI verticals. New deal momentum continued to be healthy with a growth of 32.6% YoY and 22.8% sequentially. We witnessed broad based YoY growth across client buckets as they continue to drive our performance. We continue to see good traction in our Business and Technology Transformation services, up 17.5% YoY, as we leverage our expertise in driving digital transformation for our clients. As technology investments continue to be part of our imperatives globally, we are well positioned to help clients achieve their digital transformation objectives.” 

Key highlights

• Signed deals of TCV $ 166 M during the quarter

o   TCV new deal wins of $ 138 M (vs $ 111.9 M in Q1) and renewals of $ 28 M for Q2 FY23

• Active Client Count at 301 in Q2

o   > $ 1 M customers at 76, flat YoY

o   > $ 5 M customers at 27, up by 7 YoY

o   Top client led growth - Revenue from Top 5, Top 10 and Top 20 clients grew YoY by 13.8%, 13.4% and 13.1% respectively

• Cash & Cash equivalents of $ 97.7 M in Q2 FY23 versus $ 152.5 M in Q1 FY23

o   In ₹ terms, cash and cash equivalents at ₹ 7,947 M vs ₹ 12,041 M; down ₹ 4,093 M QoQ due to buyback of shares

• DSO improved at 56 days and down 2 days QoQ
• Manpower strength of 12,758 as at 30^th September 2022 versus 12,065 a year ago

o   Net addition of 693 professionals YoY and and 193 QoQ

Share Buyback Update

• The share buyback is successfully completed. Birlasoft has bought back 7,800,000 equity shares at ₹ 500/- per equity share and made payment of consideration of ₹4,700 million (incl. taxes) to the respective shareholders.

Deal wins for the quarter

• Selected by a leading US manufacturing company for Application Managed Services (AMS).
• Chosen by a large Technology company based out of US for additional business.
• Selected by US based energy company for renewal of Application Managed Services (AMS).
• Awarded a transformational deal for Integrated Solution for Applications, by a leading automotive company based out of US.
• Chosen by US based leading mobile service provider for development work.
• Selected for Application Managed Services (AMS) for huge Asia head quartered manufacturing company.

Business Highlights & Recognition

• Birlasoft has strengthened its relationship with SAP, by leveraging RISE with SAP to transform its digital landscape onto the cloud. With enterprises adopting a ‘Cloud-First’ strategy, this move will enable Birlasoft to accelerate their clients’ transformation journeys substantially.
• Birlasoft has been recognized as a U.S. Midmarket Leader in the SAP S/4HANA System Transformation, in the ISG Provider Lens TM SAP Ecosystem Report. This is the second consecutive year for Birlasoft to be positioned as a Leader in the U.S. Midmarket in SAP S/4HANA System Transformation.