Birlasoft Sees Margin Surge, Deal Wins Hit High

Birlasoft announced its third-quarter financial results, reporting a 2.5% year-on-year increase in net profit to ₹119.8 crore. However, revenue for the quarter experienced a slight decline of 1.1%, settling at ₹1,347.5 crore compared to the previous year.

Significantly, earnings before interest and tax (EBIT) saw a remarkable surge of 58.2%, reaching ₹225.1 crore. This performance boosted the operating margin to 16.7%, an improvement from 10.4% in the same period last year. The Chief Financial Officer attributed this margin expansion to operating efficiencies and favorable exchange rates.

The company highlighted robust cash flow generation, with cash and cash equivalents increasing by 6% quarter-on-quarter and 21% year-on-year. Deal signings for the quarter were the highest for the financial year so far, totaling $202 million in total contract value (TCV), with new engagements comprising 46% of the wins.

Revenue performance was primarily driven by the Manufacturing vertical and the Infrastructure and ERP service lines. Manufacturing revenue grew 3.4% quarter-on-quarter in dollar terms. The company also noted a higher sequential revenue contribution from its top clients.