Birlasoft (BSOFT) Q4 01/02 earnings summary

Executive summary

• FY ended Mar. 31, 2002 revenue was Rs 479.81 million; prior-year comparison covers nine months, and annualized revenue was described as flat. Net profit available after prior-year expenses fell to Rs 19.78 million from Rs 34.10 million.

• Results reflected weak global IT demand and margin pressure; repeat customers generated 83% of revenue, while six new large-class customers were added.

• Strategic priorities included offshore delivery, banking/finance and manufacturing specialization, and the proposed Cummins Infotech merger.

Financial highlights

• FY 2001-02 sales and income were Rs 479.81 million vs Rs 392.11 million for the prior nine-month period; total expenses were Rs 429.96 million vs Rs 336.08 million.

• Profit before interest and depreciation was Rs 49.85 million vs Rs 56.03 million; PBT was Rs 21.97 million vs Rs 34.23 million.

• PAT before prior-year expenses was Rs 21.43 million; after Rs 1.65 million of prior-year expenses, profit available for appropriation was Rs 19.78 million.

• Consolidated sales and other income were Rs 510.09 million, PBT Rs 2.20 million and PAT Rs 1.66 million; after Rs 1.65 million of earlier-year expenses, balance available for appropriation was Rs 0.011 million.

Outlook and guidance

• Q1 FY 2002-03 revenue was Rs 122.88 million and net profit Rs 4.58 million, vs Rs 112 million and Rs 3.97 million in the same quarter last year; similar performance was expected for the rest of the year.

• Long-term mission: reach US$100 million revenue with profitability in the top 20 percentile by FY 2006-07.

• The UK subsidiary was expected to break even in FY 2002-03; the Middle East joint venture also expected to break even, while marginal US subsidiary growth was anticipated.