- 25 Oct 2022
- ICICIdirect Research
BIRLASOFT DOWNGRADES REVENUE GROWTH GUIDANCE FROM 15% TO LOWER END OF DOUBLE DIGIT IN FY23
BSOFT - 533 Change: -0.05 (-0.01 %)News:
Birlasoft reported a revenue of US$ 148.8 mn, up 0.1% QoQ & 1.1% QoQ in CC terms. In rupee terms it reported a revenue of Rs 1,192.1 crs, up 3.3% QoQ. Geography wise Europe reported a growth of 4.5% QoQ ( on favourable base) while US declined by 0.8% QoQ. Vertical wise BFSI & Manufacturing grew by 7.4% & 1.2% QoQ respectively while Energy & Lifesciences declined by 1.3% & 7.4% QoQ respectively. EBITDA margin of the company increased by 10 bps QoQ to 14.8% despite wage hike and supply side challenges due to tailwinds of decline in travel cost, increase in offshore mix & operational efficiency. The company reported a TCV of US$ 166 mn including new deal wins of US$ 138 mn during the quarter. The LTM attrition of the company declined by 50 bps QoQ to 27.4%.
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The company seeing continued challenges in executing projects due to supply side challenge which along with slower decision making at client side impacting its growth. The company now seeing lower end of double digit growth in FY23 compared to 15% guided earlier as furlough are expected to impact its Q3 performance. Attrition continued to be high albeit moderating, which need to come down meaningfully for smoother execution. The company is also getting pushback in pricing in few projects, which is a divergent trend with its large as well as comparable peers.
Impact:
Negative.