Conference Call with Birlasoft Ltd. Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript. Management in attendance
IT Consulting & Software company Birlasoft announced Q3FY24 results: Financial Highlights In INR: Revenue at Rs 13,430 million, up 2.5% QoQ and up 9.9% YoY EBITDA at Rs 2,143 million; EBITDA margin at 16.0% PAT at Rs 1,611 million, up 11.0% QoQ translating to basic EPS (not annualized) of Rs 5.82 Cash and cash equivalents increased 17% QoQ to Rs 16,887 million In USD: Revenue at USD 161.3 million: up 1.9% QoQ and up 8.7% YoY In constant currency terms, revenues up 1.8% QoQ EBITDA at USD 25.7 million; EBITDA margin stable QoQ at 16.0% PAT at USD 19.3 million, up 10.4% QoQ Operational Highlights Service Line Growth: The growth during Q3FY24 was propelled by all service lines, with Digital & Cloud services witnessing a YoY increase of 21.3%. Client Metrics: Revenue from top clients grew YoY with Top 5, Top 10, and Top 20 clients by 18.1%, 17.9%, and 9.7% respectively. The total active client count was 272. Deal Signings: The company signed deals of USD 218 million in Total Contract Value (TCV) during the quarter, consisting of USD 94 million in new deals and USD 124 million in renewals. Cash Position and DSO: Cash and cash equivalents rose by 17% QoQ to USD 203.0 million. Days Sales Outstanding (DSO) improved to 51 days. Workforce and Attrition: The workforce strength increased to 12,356 employees with attrition improving to 12.6% in Q3 FY24. Angan Guha, Chief Executive Officer and Managing Director, Birlasoft, said, “We have delivered a strong and well-rounded operating performance, with a 1.9% sequential growth in revenue to USD 161.3 million in a seasonally soft quarter and an expansion in EBITDA margin even after absorbing the full impact of compensation hikes. Deal signings during the quarter at USD 218 million TCV too have been robust, comprising both renewals as well as net new engagements. We continue to invest in our capabilities and have further expanded our leadership team with the induction of Manjunath Kygonahally as chief executive for the Rest of the World (ROW) region. The fundamentals of our business remain solid, and we stay focused on execution.” "Our revenue during the quarter under review grew 10% YoY to Rs 13,430 million. We delivered a strong margin performance too with EBITDA margin expanding to 16.0%, despite making sustained investments in our business and having rolled out an organization-wide compensation increase effective September 1st. We continued to generate strong cash flows with best-in-class DSO at 51 days, resulting in operating cash flow at 141% of EBITDA. Our sharp focus on disciplined execution and operational efficiency position us well to successfully navigate through the current macroeconomic environment," said Kamini Shah, Chief Financial Officer, Birlasoft. Result PDF