This software company doubled shareholders’ wealth in a year!

resr 5paisa Research Team 11th December 2022 - 10:07 pm
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The stock which was trading at Rs 266.15 on 13th January 2021, closed at Rs 574.70 yesterday. It has a 52-week high and low of Rs 585.85 and Rs 223.50, respectively.

Birlasoft Ltd, a part of C K Birla Group, provides various digital and IT-related services to its client in the areas of software development, package implementation, application management as well as the testing domain, enterprise and digital technologies. In the past one year, the stock has rallied by 115% on the bourses.

The company caters to the needs of various sectors such as automotive, banking, capital markets and insurance, to name a few. Also, it has made strategic alliances with Oracle, JD Edwards, SAP, Infor and Microsoft, which gives the company a competitive edge over its peers while bagging large or strategic deals.

Looking at its performance, in Q2FY22 on a consolidated basis, the company’s net revenue was 18% YoY to Rs 1011.69 crore. It's PBIDT (ex OI) went up by 27% to Rs 151.77 crore, while its corresponding margin expanded by 107 bps YoY to 15%. The bottom line of the company rose 49% YoY to Rs 103.13 crore while its corresponding margin expanded by 213 bps YoY to 10.19%.

During the quarter Q2FY22, the company signed deals of Total Contract Value USD 140 million. Significant order wins during the quarter included a multi-million dollar IT managed services and support deal from a European offshore oil and gas major.

Moreover, the company has been selected by a US global solutions provider for their application managed services for overseeing and managing the JD Edwards EnterpriseOne production system. In this project, Birlasoft will enable streamlined enhancements for the JD Edwards ecosystem and allow the company to improve processes and prepare for its future growth.

At 1.16 pm, the share price of Birlasoft Ltd was trading at Rs 564.5, which was a decline of 1.77% from the previous day’s closing price of Rs 574.7 on BSE.

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