Birlasoft (BSOFT) Q1 24/25 earnings summary

Executive summary

• Revenue was ₹13,274.31m, up 5.1% YoY but down sequentially; PAT was ₹1,502.07m, up 9.2% YoY and down QoQ.

• Q1 followed five consecutive quarters of sequential growth, as tighter customer spending and deferred project starts weighed on revenue, utilization and margins.

• Management called Q1 a blip, said delayed programs were returning by late July and expected Q2 to be stronger, without quantifying the recovery.

• TCV bookings were $160m, up 10.1% YoY; investment continued in infrastructure, digital, data and AI capabilities.

Financial highlights

• Consolidated revenue was ₹13,274.31m ($159.1m), up 5.1% YoY in INR and 3.8% YoY in constant currency; QoQ revenue declined 2.6% in INR.

• EBITDA was ₹1,951m ($23.4m) with a 14.7% margin; lower utilization and unrecovered staffing costs on delayed projects weighed on profitability.

• PAT was ₹1,502.07m ($18.0m), up 9.2% YoY; basic and diluted EPS were ₹5.41 and ₹5.32.

• Operating cash flow was $17.8m, 76% of EBITDA; DSO was 52 days.

• TCV bookings were $160m, up 10.1% YoY; net-new TCV rose 17% YoY to $94m.

Outlook and guidance

• Q2 revenue is expected to be stronger than Q1; recovery size and full-year growth were not quantified, with delivery dependent on execution and delayed project ramps.

• BFSI is expected to grow ahead of the industry in FY25, at a more moderate pace; life sciences may grow modestly in Q2 and is expected to return to growth in H2.

• Management expects Q2 deal wins to exceed Q1; the pipeline grew QoQ, but conversion into orders remains key.

• Wage-increase timing and quantum remained under review; full-year margin guidance was withheld, with margin improvement targeted as revenue recovers.