Birlasoft Gains 17% To Hit 52-Week High On Q1 Net Profit

On Wednesday, shares of Birlasoft rose over 17 percent to hit a 52-week high of Rs 149.50 apiece after the software company reported a nearly 35 percent increase in its consolidated net profit to Rs 56.3 crore for the June ended quarter.

The C K Birla Group company had posted a profit of Rs 41.8 crore for the same period last year.

Revenue from operations grew 17.7 percent to Rs 914.6 crore in the April-June 2020 from Rs 777.2 crore in the year-ago period.

"Our Q1 results were better than what we had expected at the beginning of this pandemic quarter. Our healthy deal wins of $179.7 million and good pipeline across verticals and horizontals, coupled with strong cash collections is a testimony to the trust shown in us," said Birlasoft Managing Director and CEO Dharmender Kapoor.

He said one of the major reasons for the rise in net profit was the drop in other income.

"Our other income has gone down because we moved our cash and money onto more safer instruments and because of that the impact is coming up," Kapoor added.

Kapoor said he was cautiously optimistic as there is still a lot of uncertainty amid the COVID-19 pandemic.

"Clients aren't back in offices and are working from home and this uncertainty will probably remain for this quarter as well...But it is clear that the worst is behind us because the kind of wins we had this quarter. This was probably the second best quarter for us in the last six quarters, which is very encouraging," he said.

The company signed deals worth $179.7 million in total contract value (TCV) during the quarter.

Birlasoft's headcount stood at 9,908 at the end of June quarter. The attrition rate was 16.5 percent.

The company also announced the appointment of Chandrasekar Thyagarajan as its Chief Financial Officer with effect from 21 August 2020.