Birlasoft Ltd Q2FY23 PAT up 11.6% at Rs115.05 crore as higher employee costs limit profit growth

25 Oct 2022 , 09:08 PM

Birlasoft Ltd reported 17.82% growth in total revenues for the September 2022 quarter on consolidated basis at Rs1,192cr.

Revenue growth was 3.26% in sequential terms. In terms of verticals, there was growth visible across BFSI, Manufacturing and Utilities.

However, revenues from life sciences vertical was lower on yoy basis. In terms of operating profit contribution, all the verticals saw improved operating profits on yoy basis.

Net cash flows from operations in H1 was up 3 fold on better receivables management in the quarter.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 11.56% at Rs115.05cr and it was -4.7% lower on sequential basis.

The villain of the piece was the sharp spike in employee costs, which is the case across IT industry today. That had subdued the total profit growth, which was lower than the sales growth.

However, there was growth in operating profits across all four key verticals including life sciences. Net profit margins at 9.65% in Q2FY23 were lower compared to 10.19% in Q2FY22 and against 10.46% in Q2FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	Birlasoft Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,192.01	₹ 1,011.69	17.82%	₹ 1,154.41	3.26%
Net Profit (Rs cr)	₹ 115.05	₹ 103.13	11.56%	₹ 120.72	-4.70%
Diluted EPS (Rs)	₹ 4.08	₹ 3.63		₹ 4.25
Net Margins	9.65%	10.19%		10.46%