The CK Birla Group company reported a 43.3 per cent rise in consolidated net profit to Rs 98.9 crore for the quarter ended March. It had posted a profit of Rs 69 crore for the corresponding period a year ago.
The scrip soared as much as 16.61 per cent to Rs 312 in morning deals. However, it cooled down to Rs 302.60, up 13 per cent at the last count. The stock sharply outperformed the benchmark S&P BSE Sensex, which was up 184.73 points or 0.37 per cent at 50,725.21.
The company, however, reported a marginal decline in revenue from operations to Rs 902.8 crore in Q4, from Rs 907 crore in the year-ago period.
It reported a record deal win rate of $888 million in total contract value (TCV), with the highest ever order book of annuity and digital deals. The company is eyeing the $1 billion mark of total income.
Shares of the IT consulting and software firm have delivered a 350 per cent return in last one year. On Monday, the counter registered a new 52-week high of Rs 312, from Rs 70.5 a year ago.
Brokerage ICICI Securities said that improving client mining, healthy deal pipeline, cross selling opportunities, increase in deal sizes, project ramp ups, reversal of discounts and anticipated higher net new growth bode well for long-term revenue growth. It has maintained a ‘buy’ rating on the stock with a revised target price of Rs 315.
In dollar terms, the company’s net profit grew 41.4 per cent to $13.5 million, while revenue was down 1.8 per cent at $123.3 million in the March quarter compared with the year-ago period.
For the financial year 2020-21, net profit was up 43 per cent at Rs 320.8 crore, and revenue from operations up 8 per cent at Rs 3,555.7 crore.
Birlasoft’s headcount stood at 11,051 on March 31, 2021, with a net addition of 783 professionals during the financial year and 652 during the quarter.
