Smallcap IT stock sheds 5% after net profit drops 27.4% to ₹117 crore in December quarter, revenue up 1.5% YoY | Stock Market News
Birlasoft Q3 Results: The smallcap IT company announced its October-December quarter of fiscal 2024-25 (Q3FY25) on Tuesday, February 12, reporting a drop of 27.4 per cent in net profit to ₹117 crore, compared to ₹161 crore in the corresponding period last year. The stock declined five per cent to hit an intraday low of ₹503.10 after opening at ₹527.65 apiece on the BSE.
The CK Birla Group company‘s revenue from operations in the third quarter of the current fiscal rose 1.5 per cent to ₹1,362.7 crore, compared to ₹1,342.9 crore in the year-ago period. The earnings before interest and tax dropped 26.4 per cent to ₹142.2 crore, compared to ₹193.2 crore in the same period last year. The margin dropped to 10.4 per cent compared to 14.4 per cent in the year-ago period.
Birlasoft Q3 Results: Key Metrics
“Our performance during the quarter under review demonstrates our ability to pursue deal closures, drive operational efficiencies, and generate consistently strong cash flows even in a seasonally weak quarter. Deal signings during the quarter at $226 million TCV have been the best during the current financial year,” said Angan Guha, Chief Executive Officer and Managing Director of Birlasoft.
“While higher-than-usual furloughs affected our revenue performance, we have been able to deliver a steady margin performance sequentially after absorbing much of the compensation increases rolled out for most of our employees during the quarter. We also continue to make investments aimed at enhancing our capabilities as well as partnerships, which we believe is key to creating a differentiated value proposition in the marketplace,” added Guha.
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The IT company’s headcount stood at 12,125 as of December 31, 2024, and attrition was 12.7 per cent during the December quarter. Arun Dinakar Rao will cease to be Chief People Officer (CPO) and Senior Management Personnel (SMP) of the company, effective close of business hours on February 11, 2025. Birlasoft appointed Priti Kataria as the Chief People Officer and Senior Management Personnel with effect from February 12, 2025. Birlasoft commands a market cap of ₹14,003.27 crore.
“Our EBITDA margin stood at 12 per cent for the quarter, representing only a marginal sequential decline even after implementing a salary increase effective October 1st covering most of the organization, on the back of multiple operational efficiency initiatives that we have been driving and some exchange rate tailwind,” said Kamini Shah, Chief Financial Officer, Birlasoft. On Tuesday, shares of Birlasoft settled 3.96 per cent lower at ₹504.70 apiece on the BSE.
