Birlasoft (BSOFT) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated revenue rose 29.51% to Rs. 6,005.46m; EBITDA grew 30.39%, while net profit increased 1.60% to Rs. 512.82m amid currency pressure and underutilized facilities.

• Strategic priorities centered on customer focus, leadership in targeted industries, innovation, higher productivity and improved profitability.

Financial highlights

• Consolidated revenue was Rs. 6,005.46m; export revenue represented 94.8% and domestic sales 5.2%.

• EBITDA reached Rs. 922.89m, up 30.39%; gross profit was Rs. 2,275.21m, up 29.76%.

• Net profit after tax was Rs. 512.82m, up 1.60%; excluding the Rs. 13.72m provision for decline in Findant investment value, profit was Rs. 525.58m.

• Reported revenue in USD was $145.23m, up 41.67%; net profit was $12.40m, up 11.03%.

Outlook and guidance

• FY09 revenue target: $185m–$190m (Rs. 7,400m–Rs. 7,600m) and net profit of Rs. 650m–Rs. 670m.

• FY09 targets imply revenue growth of 27%–31% in USD and 23%–26% in INR, with profit growth of 27%–31% in INR.

• Mission 2010 target: $250m revenue; FY09 priorities include customer satisfaction, targeted-segment growth, productivity and profitability.

• F&A BPO services acquired from Cummins were expected to generate cumulative revenue of $80m over five years once stabilized.