Birlasoft Faces Profit Decline Amid Revenue Growth

IT services provider Birlasoft reported a 12.06% drop in net profit for Q2 2024 at Rs 127.5 crore compared to the previous year. Quarterly revenues rose by 4.45% to Rs 1,368.2 crore, driven by project ramp-ups and new deals. The CK Birla Group company's shares rose 4.17%.

Birlasoft, a notable IT services and solutions provider, announced a significant 12.06% drop in its consolidated net profit for the quarter ending September 30, 2024, reaching Rs 127.5 crore. This contrasts with the Rs 145 crore profit recorded during the same period last year, as stated in the company's stock exchange filing.

Despite the decline in profit, Birlasoft's revenue exhibited an upward trend, registering a 4.45% increase to Rs 1,368.2 crore for the reporting quarter, up from Rs 1,309.8 crore in Q2 FY24. The sequential quarterly revenue growth was 3.07%, attributable to project ramp-ups, enhanced account mining, and consolidation deals enhancing wallet share.

The CEO of Birlasoft, Angan Guha, attributed the revenue growth to strategic investments in technology, domain capabilities, and partnerships, which are receiving recognition from industry analysts. The CK Birla Group company also secured contracts worth USD 136 million during the quarter, which includes new deal wins and renewals. Subsequently, Birlasoft's shares climbed 4.17%, settling at Rs 600.85 on the BSE.

(With inputs from agencies.)