Birlasoft (BSOFT) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 combined strong growth with completion of the Cummins Infotech merger; focus centered on manufacturing and BFSI, which contributed 88% of revenue.

• Consolidated revenue was Rs. 763.07 million and profit after tax Rs. 57.39 million; prior-year figures reflect the legacy business before the merger.

• Management described the outlook as positive, while flagging currency, competition and customer concentration as continuing challenges.

Financial highlights

• Consolidated revenue was Rs. 763.07 million vs Rs. 507.97 million; profit before tax was Rs. 64.23 million vs Rs. 2.20 million.

• Consolidated profit after tax was Rs. 57.39 million vs Rs. 0.01 million; basic EPS was Rs. 9.78 vs Rs. 0.02.

• Standalone revenue was Rs. 725.07 million vs Rs. 478.41 million; standalone profit after tax was Rs. 67.94 million vs Rs. 19.78 million.

• Foreign-exchange earnings rose to Rs. 706.59 million from Rs. 462.27 million; foreign-exchange outgo was Rs. 357.67 million vs Rs. 267.67 million.

Outlook and guidance

• FY 2003-04 revenue guidance was Rs. 986–1,080 million, with net profit targeted above Rs. 120 million; management projected revenue growth above 40% and profit growth above 100%.

• Offshore revenue was expected to rise from 36% to 42%; more than 75% of foreign-exchange exposure was covered through forward contracts.

• Mission target: USD 100 million in revenue and profitability in the top 20 percentile by FY 2006-07.

• Two of three subsidiaries were profitable in FY 2002-03; management expected all subsidiaries to report profits in FY 2003-04.