Birlasoft Limited, one of the Pune-based IT service providers, has seen a sudden big jump in its net profit as it reported its financial results for the fourth quarter ending March 31, 2024. Although the company demonstrated 60.7% year-on-year (YoY) growth which is ultimately a fortune in the 5 months, the net profit stood at around INR 180 Cr as against INR 112 crore declared in the same quarter a year ago.
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Steady Revenue Growth
Birlasoft reported 11.1% growth in its revenue from operations to INR 1,362.5 Cr as per the results of the last quarter of the financial year. This figure reached INR 2,610.9 Cr when compared with INR 1,226.3 Cr in the same period of the last financial year, which reflects the company’s ability to capitalise on market opportunities.
Dividend Recommendation
To reward shareholders, the Board of Directors of BirlaSoft has recommended a final dividend of INR 4 per equity share of face value INR 2 for the financial year 2023-24. However, this recommendation is subject to the approval of the members in the upcoming Annual General Meeting (AGM). The date of the AGM will be communicated in due course, and if approved, the dividend will be paid within the statutory timelines.
Key Financial Indicators and Client Base
During the Q4FY24, BirlaSoft signed deals with a total contract value (TCV) of USD 240 million. The new deal won USD 107 million, while the renewal was worth USD 133 million. Despite a slight decline in the number of active customers to 259 in Q4FY24 (compared to 272 in Q3FY24 and 288 in Q4FY23), the company has driven for increased efficiency and profitability.
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Strong Operating Performance
At the operational level, BirlaSoft demonstrated impressive performance metrics. The company’s EBITDA witnessed a significant growth of 32.7% to reach INR 221.5 Cr in the fourth quarter of the financial year as against INR 166.9 crore YoY. Additionally, EBITDA margin stood at 16.3%, showing a substantial improvement from 13.6% in the same period last financial year.
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