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Birlasoft Q2FY25 Results: Strong Revenue Rebound and Positive Growth Trajectory
Birlasoft's Q2FY25 results showcase a robust financial performance marked by a 4.5% YoY revenue growth, reaching Rs 13,682 million. The company witnessed significant momentum across key verticals including Manufacturing, BFSI and E&U, coupled with strong growth in Digital & Data and ERP service lines. This success is further amplified by strategic partnerships and a commitment to enhancing technological capabilities, positioning Birlasoft for continued growth in the upcoming quarters.

by RA ALOK DAIYA SEBI Reg. INH000011468

Financial Performance at a Glance
Robust Growth Across Verticals and Service Lines
Strong Vertical Performance
Manufacturing, E&U, and BFSI emerged as key growth drivers.
  • Manufacturing up 4.7% QoQ
  • E&U up 4.7% QoQ
  • BFSI up 1.4% QoQ
Service Line Momentum
Digital & Data and ERP service lines demonstrated substantial growth.
  • Digital & Data up 6.6% QoQ
  • ERP up 4.3% QoQ
Client Wins
The company witnessed a rise in USD1Mn+ clients, reaching 89, and USD5Mn+ clients, reaching 24.
Operational Highlights

1

Deal Momentum
Signed deals worth USD 136 million TCV, including USD 89 million in new deals.

2

Client Base
Active client count reached 261, reflecting a stable and growing client base.

3

Cash Position
Strong cash flow generation led to a 29% YoY increase in cash and cash equivalents.
Dividend Declaration and Workforce Updates
Birlasoft announced an interim dividend of Rs 2.50 per share, payable on 31st October 2024.
The company's workforce strength reached 12,578, with attrition at 11.8% in Q2FY25.
Strengthening Technology Prowess
Birlasoft secured the AWS Competency in Manufacturing and Industrial Consulting, further solidifying its position as a leading digital solutions provider. This achievement underscores the company's expertise in leveraging cloud technologies to optimize manufacturing processes, enhance operational efficiency, and drive innovation. Birlasoft's deep industry knowledge combined with its AWS expertise enables it to deliver comprehensive solutions that address the unique challenges faced by manufacturers.
By achieving this competency, Birlasoft demonstrates its commitment to delivering cutting-edge solutions that help its clients achieve their business objectives and navigate the evolving landscape of manufacturing.
Management Commentary: A Vision for Growth
CEO Angan Guha highlighted the company’s strong revenue rebound driven by broad-based growth across key accounts, verticals, and service lines. He emphasized the successful ramp-up of projects, improved account mining, and gains in wallet share from consolidation deals. Guha emphasized Birlasoft's commitment to investing in tech and domain capabilities and strategic partnerships, positioning the company for sustained growth.
Financial Outlook
CFO Kamini Shah highlighted the 4.5% YoY revenue growth and robust cash flow generation, leading to a significant increase in cash and cash equivalents. The company maintains a healthy DSO, enabling strategic investments. Birlasoft expects margin expansion as these investments contribute to a differentiated value proposition in the market.