In a bustling quarter marked by strategic maneuvers, Birlasoft successfully secured deals totaling a substantial $160 million. Of this, a notable $94 million stemmed from fresh agreements, while the remaining $66 million came from renewals, indicating a steady blend of new ventures and sustained partnerships.
However, the count of active clients experienced a minor dip, resting at 258 in the first quarter of FY25. This marks a slight reduction from the previous 259 in Q4FY24, and a more pronounced decline compared to 285 in Q1FY24, reflecting the dynamic nature of client engagements.
Financially, Birlasoft demonstrated a commendable improvement in liquidity, with cash and cash equivalents soaring to $229.7 million by the close of Q1FY25, an increase from $209.2 million at the end of the preceding quarter. This upward trend underscores the company’s robust cash management strategies and operational efficiency.
On the human resources front, Birlasoft’s workforce expanded to 12,865 employees as of June 30, 2024, showcasing its growth trajectory despite the broader market challenges. Moreover, the attrition rate, a critical metric of employee turnover saw a favorable shift, declining to 11.6% in Q1FY25, which signals improved retention efforts amidst a competitive talent landscape.
Insights from Leadership
Angan Guha, CEO and Managing Director of Birlasoft, acknowledged the turbulent market conditions, characterized by restrained client spending.
Yet, he highlighted that the company’s Infrastructure and Rest of the World (ROW) segments have thrived, bolstered by ongoing enhancements in their capabilities and geographical outreach—demonstrating resilience in adversity.
Financial Highlights from the CFO
Kamini Shah, the CFO, painted a positive picture of the financial landscape. She reported a 5.1% year-on-year rise in revenue, reaching Rs 13,274 million.
Simultaneously, the profit after tax (PAT) surged by 9.2% year-on-year to Rs 1,502 million, a testament to effective cost management and strategic growth.
The quarter’s strong cash collections were particularly noteworthy, driving a remarkable 46% year-on-year leap in cash and cash equivalents, now totalling Rs 19,143 million.
An impressive feat in operational efficiency, Birlasoft’s Days Sales Outstanding (DSO), a measure of the average collection period for receivables improved to an enviable 52 days, positioning the company as a leader in its industry regarding cash conversion cycles.
Operating under the prestigious CK Birla Group umbrella, Birlasoft continues to carve its niche as a global provider of digital transformation, IT consulting, services, solutions, and products catering to diverse industries worldwide.
The firm’s ongoing commitment to innovation and client success propels it forward amidst evolving market dynamics.
To know more, click here.
