Birlasoft (BSOFT) Q4 04/05 earnings summary

Executive summary

• FY05 consolidated revenue rose 98.79% to Rs 2,524.53m and PAT after prior-period gain reached Rs 283.95m; excluding Panex, revenue grew 55% and PAT 81.69%.

• Added 15 customers, bringing active accounts to 24; employee count rose by 567 to 1,481, while operations expanded in Germany and Japan.

• Strategy centered on Manufacturing and BFSI, deeper key-customer relationships, and growth in ATS, SAP, and Risk Management & Compliance services.

Financial highlights

• Consolidated revenue was Rs 2,524.53m vs Rs 1,269.95m YoY; operating profit before interest and depreciation was Rs 334.44m vs Rs 195.63m.

• Consolidated PAT before extraordinary items was Rs 280.83m vs Rs 144.23m; PAT after a Rs 3.12m prior-period credit was Rs 283.95m.

• Excluding Panex, revenue was Rs 1,968.38m and net profit Rs 262.05m; growth was 55% and 81.69%, respectively.

• Standalone revenue was Rs 1,948.69m and PAT Rs 223.62m; basic and diluted EPS were Rs 17.68 and Rs 13.65 after the 2:1 share split.

Outlook and guidance

• FY06 revenue guidance was ~US$75m; the FY07 mission remained US$100m, requiring 33% CAGR over two years from FY05 revenue of US$56.58m.

• Guidance called for 31% sales growth and 33%–40% profitability growth, with margin improvement of 13–85 bps if achieved.

• Planned investments included CMMI certification, Six Sigma, learning and training, sales and marketing, and technology and consultative capabilities.