Birlasoft [BSE: 532400, NSE: BSOFT], a part of the USD 2.8 billion diversified CK Birla Group, reported its unaudited consolidated financial results for the first quarter ended June 30, 2022.

Dharmender Kapoor, Managing Director and Chief Executive Officer, Birlasoft, said, “New fiscal year has begun well for us with a 22.1% YoY ₹ revenue growth, coupled with robust deal momentum, our new deal signing was up by 19% YoY. Our strong revenue growth has been led by top customers which continue to grow at a healthy pace. Our expertise in driving digital transformation for clients is driving good growth for Business and Technology Transformation services, which recorded a growth of 20.7% YoY. Going forward we will strive to help clients navigate through new age technologies to derive maximum benefits of digital transformation.”

Key Financial highlights for Q1 FY23

Other highlights

• Signed deals of TCV $ 185 M during the quarter

o   TCV new deal wins of $ 112 M and renewals of $ 73 M for Q1 FY23

• Active Client Count at 300 in Q1

o   > $ 1 M customers at 82, up by 5 YoY

o   > $ 5 M customers at 25, up by 3 YoY

o   Top client led growth – Revenue from Top 5, Top 10 and Top 20 clients grew YoY by 16.5%, 22.7% and 21.0%  respectively.

• Cash & Cash equivalents of $ 152.5 M in Q1 FY23 versus $ 154.0 M in Q1 FY22

o   In ₹ terms, cash and cash equivalents at ₹ 12,041 M vs ₹ 11,446 M; up ₹ 594 M YoY

• DSO stable at 58 days and flat QoQ.
• Manpower strength of 12,565 as at 30^th June 2022 versus 11,508 a year ago

o   Net addition of 1,057 professionals YoY and and 361 sequentially

Share Buyback Update

• The Board of Directors at its meeting held on May 23, 2022, approved a proposal to buy-back upto 7,800,000 fully paid equity shares of ₹ 2/- each of the Company for an aggregate amount not exceeding ₹ 3,900 million being 2.79% of the total paid up equity share capital at ₹ 500/- per equity share, on a proportionate basis through the tender offer route using the Stock Exchange mechanism (“Buyback’). Subsequently, the members of the Company approved the Buyback through postal ballot by e-voting on June 30, 2022. Securities and Exchange Board of India has issued its observations on the Draft Letter of Offer. Accordingly, the Company is in the process of dispatching the Letter of Offer to eligible members holding shares as on the record date i.e. July 15, 2022. The tendering period for the Buyback will commence on August 11, 2022 and conclude on August 26, 2022.

Deal wins for the quarter

• Selected by a leading US Medical Technology Company for providing Testing as a services (TaaS).
• Chosen by a leading US technology services provider to global energy, to enhance customer experience by implementations of data analytics and Business Intelligence services.
• Selected by a leading automative and energy stotahe company for Application Managed Services (AMS).
• Chosen by a US Retailer for end-to-end public cloud adoption capabilities and managed services.
• Awarded by a leading US technology services provider to global energy, for roll outs and support of the J D Edwards Enterprise software stack.
• Awarded by a leading engine and power generation major, for streamlining and support of its Oracle based business-critical application managed services.

Business Highlights & Recognition

• Birlasoft Partners with Google Cloud to Enable Enterprises Accelerate their Digital Transformation Journey. Birlasoft and Google Cloud have partnered to accelerate cloud-enabled digital transformation strategy for Bestseller India bringing end-to-end cloud adoption capabilities complemented by Google Cloud’s engineering capabilities and domain expertise.
• Birlasoft named a Top 15 Sourcing Standout by ISG. Birlasoft was among the leading providers in the Booming 15 category globally, as well as for the Americas region based on Annual Contract Value (ACV) won over the last 12 months, according to the 2Q 2022 Global ISG Index™. This is the ninth consecutive time that Birlasoft has been featured across named categories by ISG.
• Birlasoft Adopts RISE With SAP to Migrate their Digital Core to Cloud.

About Birlasoft

Enterprise to the Power of Digital^TM

Birlasoft combines the power of domain, enterprise and digital technologies to reimagine business processes for customers and their ecosystem. Its consultative and design thinking approach makes societies more productive by helping customers run businesses. As part of the multibillion dollar diversified The CK Birla Group, Birlasoft, with its 12,500+ professionals, is committed to continuing its 160-year heritage of building sustainable communities. For further information, visit www.Birlasoft.com.