Birlasoft Ltd shares jumped 6.5% on Wednesday after the company reported strong growth in revenue and profit after tax (PAT) for the quarter that ended on September 30, 2023 (Q2FY24).

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The global IT services provider reported strong revenue growth in the second quarter of the ongoing financial year (FY24) at 5.7% on a year-on-year (YoY) basis and 3.1% on a quarter-on-quarter (QoQ) basis, higher than the CNBC-TV18 estimates of 2.3% to 2.5%.

Its revenue in rupee terms grew 3.7% QoQ to ₹1,309.9 crore in the September quarter from ₹1,262.8 crore in the quarter ended on June 30, 2023. On a similar note, Birlasoft’s revenues in US Dollar terms grew 3.1% quarter on quarter at $158.3 million compared to $153.6 million in the previous quarter.

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The company’s margins rose by 50 basis points (bps) in the September quarter despite the underlying impact of salary hikes for a month.

The earnings before interest and tax (EBIT) stood at ₹207.1 crore, up 7.25% sequentially as against ₹193.1 crore in the June quarter. The EBIT margin advanced 50 bps to 15.8% in Q2FY24 compared to 15.3% in the June 2023 ended quarter.

The profit after tax (PAT) grew 5.5% QoQ to ₹145.1 crore in the said quarter from ₹137.5 crore in the same period last year, which was adjusted for Invacare settlement of $2 million in the June quarter (Q1FY24).

During the quarter under focus, Birlasoft signed deals of a total contract value (TCV) of $271 million, which included new deal wins of $167 million.

The deal TCV signed shot up sharply by 86% sequentially and 63% YoY in Q2FY24, while the net new deals soared 110% QoQ and 21% on a yearly basis in the quarter.

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(Edited by : Asmita Pant)

First Published:Nov 1, 2023 4:14 PM IST