With a net profit drop of 18% in Q4, Birlasoft has declared a 100% dividend 2023

At the end of today’s trading session, Birlasoft Ltd, a mid-sized IT company, had a market capitalization of 7,912,15 Cr. Birlasoft, a member of the multibillion-dollar diversified CK Birla Group, has declared its Q4 and FY23 earnings as well as a 100% dividend.

The Board of Directors has approved the “Recommendation of a final dividend of Rs. 2/- per equity share of face value Rs. 2/- each (100%), for the financial year 2022-23, subject to a declaration of the same by members at the ensuing Annual General Meeting (“AGM”) of the Company.

The date of the AGM will be announced in due course, and the dividend, if declared by the shareholders, will be paid within the statutory timeframes, Birlasoft stated today in a filing with the stock exchange.

Birlasoft’s NSE share price rose 2.27% to 288.05 from 281.65.

During the quarter ending in March 2023, the company’s revenue from operations was 1101.4 Cr, a decrease of 10.19% year-over-year from 1226.4 Cr during the quarter ending in March 2022. During Q4FY23, the company reported an EBITDA of 174.5 Cr, down 4.50% YoY from 167 Cr in Q4FY22. During the quarter under review, Birlasoft reported a net profit of Rs 132.9 crores, a decrease of 18% year-over-year from 112.20 crores in the year-ago quarter.

Mr. Angan Guha, CEO and Managing Director of Birlasoft, stated, “We are delighted to report a successful operating quarter with robust revenue and EBITDA margin performances in continuing business. The quarter’s deal transactions with a total contract value of $286 million were the highest of the year under review.

The solid fundamentals of our business, investments in enhancing our capabilities, and the momentum with which we enter the new fiscal year position us well to face the challenges of an increasingly uncertain macroeconomic environment and shifting customer priorities in the future.

“Revenues for the fiscal year FY’23 increased by 16.1% to 47,948 million, and cash flow from operations accounted for 100% of adjusted EBITDA as a consequence of a sustained focus on collections resulting in an industry-leading DSO of 53 days.

We ended the year with a strong balance sheet and believe that a restructured organization, sharpened focus, and disciplined execution should position us well to successfully navigate the current macroeconomic environment, according to Birlasoft’s Chief Financial Officer, Ms. Kamini Shah.

The shares of Birlasoft closed at 288.05 per share on the NSE today, up 2.27% from the previous close of 281.65. On 05-May-2022, the stock reached a 52-week high of 419.10 and a 52-week low of 250.25 on 03-Feb-2023.

During the fourth quarter of fiscal year 23, the company reported a promoter shareholding of 41.08 percent, FII stakes of 11.47 percent, DII stakes of 21.20 percent, public stakes of 26.17%, and other stakes of 0.08 percent. According to Birlasoft’s Q4FY23 shareholding structure, renowned investor Ashish Dhawan held 27,64,615 shares, or a 1.01% stake in the company.

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About the Author: Sanjh Vishwakarma

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