Birlasoft (BSOFT) Q4 03/04 earnings summary

Executive summary

• FY03/04 delivered strong growth: consolidated revenue rose 67% to Rs.1,269.95m and PAT increased 151% to Rs.144.23m.

• Growth strategy centered on Manufacturing and BFSI, deepening relationships with key customers, expanding embedded/VLSI and SAP offerings, and pursuing selective mergers and acquisitions.

• Mission: reach US$100m revenue and top-20-percentile profitability by FY06/07; FY04/05 guidance was Rs.1,750m revenue and Rs.235m profit.

Financial highlights

• Consolidated sales and income reached Rs.1,269.95m versus Rs.763.07m in FY02/03; consolidated PAT was Rs.144.23m versus Rs.57.39m.

• Consolidated operating profit before interest, depreciation and tax was Rs.195.63m versus Rs.100.82m; PBT was Rs.150.42m versus Rs.64.23m.

• Standalone revenue was Rs.1,245.09m versus Rs.725.07m; standalone PAT was Rs.126.01m versus Rs.67.94m.

• Consolidated operating cash flow was Rs.46.86m; investing activity used Rs.91.96m and financing activity generated Rs.163.96m.

Outlook and guidance

• FY04/05 revenue guidance: Rs.1,750m (US$39m); projected profit: Rs.235m (US$5.25m).

• Long-term mission targets US$100m revenue and top-20-percentile profitability by FY06/07.

• Forward cover was taken for 90% of net India repatriation to mitigate dollar depreciation exposure; higher offshore delivery was also expected to support profitability.