In This Article:
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Revenue: $168.8 million for the quarter, constant currency growth of 0.1% year-on-year and 1.1% quarter-on-quarter.
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EBITDA: $19.3 million, with a margin of 12%.
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Net Income (PAT): $13.8 million, 9.3% lower quarter-on-quarter.
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Cash and Balances: $240 million, up 8.2% quarter-on-quarter and 18.3% year-on-year.
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Operating Cash Flow: $29.9 million, about 115% of EBITDA.
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DSO (Days Sales Outstanding): 53 days.
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Deal Signings: $226 million worth of TCD signings, best quarter in terms of deal signings for the fiscal year.
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Digital and Data Business Revenue: Grew by 2.4% quarter-on-quarter, contributing 57% of overall revenues.
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ERP Business Revenue: Declined by 5.7% sequentially.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Birlasoft Ltd (BOM:532400) reported a strong cash balance with an 8.2% increase quarter-on-quarter, demonstrating robust cash generation.
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The company achieved $226 million worth of TCD signings, marking the best quarter for deal signings in the current fiscal year.
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Investments in AI and Gen AI capabilities, including the development of the Gen AI platform 'Kuchito', are expected to enhance competitive advantage.
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Despite wage hikes, Birlasoft Ltd (BOM:532400) maintained an EBITDA margin of 12%, showcasing effective cost management.
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The digital and data business, contributing 57% of overall revenues, grew by 2.4% quarter-on-quarter, indicating strong performance in this segment.
Negative Points
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Revenue growth was modest at 1.5% year-on-year in rupee terms, with constant currency growth being flattish.
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Higher than usual furloughs impacted revenue performance, with some furloughs extending into January, affecting Q4 as well.
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The ERP business saw a sequential decline of 5.7%, reflecting weaknesses in this service line.
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The company faced challenges in predictability of growth, with unexpected client furloughs impacting performance.
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Life sciences and manufacturing verticals experienced higher furloughs, contributing to a seasonally weak quarter.
Q & A Highlights
Q: Can you provide insights on the impact of furloughs and how they might affect future quarters? A: (Angan Guha, CEO) This year, we experienced more furloughs than usual, extending into January, which will impact Q4 revenues. We aim to mitigate this impact and focus on maintaining strong booking performance as seen in Q3.
Q: Are there any significant deals in the pipeline, particularly with new logos? A: (Angan Guha, CEO) We are in discussions for a significant deal with a new logo in Europe. If concluded, it will positively impact our order bookings, similar to Q3.