BirlaSoft reported revenue growth after two quarters of degrowth. EBITDA margins have expanded sharply by 250 basis points (bps), the only miss seems to be the decline in order wins.

Discussing the Q3 numbers and outlook on the business going forward, Dharmender Kapoor, CEO of Birlasoft said, “We are a small company and we have taken a goal that in the next four years we have to become a billion dollar company. Our margins are going to be consistent and we will continue to deliver more than 15 percent.”

The demand has picked up and about 70 percent of discounts over the project deferrals that the company made during the pandemic time have been restored, he said. He expects the residual 30-40 percent of discounts to restore in this quarter.

In terms of deal wins, Kapoor said, “There are a significant amount of wins that we had even in Q3. We are working on further large deals and if we close another one in Q4, it will again jump up very soon.”

On revenues, he said, “We will definitely grow from the previous year. We are on the growth path and our Q4 is also looking good. So we will be delivering better than what we delivered in the previous year.”

Kapoor also said that the business in Europe is a bit unpredictable.

“We are working with our clients but it is the net new deals that are slowed down in Europe because there are newer conversations that are required for newer projects to come up. So from that perspective, it is going to remain unpredictable for another one quarter in my opinion.”

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(Edited by : Ajay Vaishnav)