The growth in profit in Q4 comes on the back of surge in non-core income, slight increase in operating margin and a decline in employee expenses. Operating margin jacked up by 33 bps (3.8% QoQ) to end at 14.7% in the final quarter of FY24.
The revenue for the Pune-based company in Q4 stood at Rs 1,363 crore, up 1.5% sequentially. In December quarter the IT service provider posted a revenue of Rs 1,343 crore. For the full fiscal 24, the company’s revenue came at Rs 5,278 crore, up by 10.1% on-year.
The IT company’s board has recommended a final dividend of Rs 4 per share. Angan Guha, CEO and MD, Birlasoft, said, “On a constant currency basis, our revenues have grown 9.1% ex Invacare during FY 24 and revenues during the fourth quarter are up 1.6% sequentially.” Invacare was the US based client of Birlasoft that filed for bankruptcy last year.
He added, “While our near term outlook is likely to reflect the impact of shifts in customer priorities that affect both transformational and discretionary spends, we continue to invest in our capabilities such as Generative AI where we have been early adopters.”
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Growth in the final quarter was led by ERP and Infrastructure among service lines and by BFSI, Energy & Utilities (E&U) and Manufacturing among verticals. While BFSI was up 4.4% QoQ, E&U and manufacturing were up by 4% and 3.6% QoQ, respectively. The company signed deals of TCV (total contract value) of $240 million during the quarter with TCV new deal wins of $107 million and renewals of $133 million.
Attrition came down marginally from 12.6% in the December quarter to 12.4% in the just concluded quarter. The company’s total headcount increased by 239 to reach 12,595 at the end of FY24. Utilization fell by 80 bps to end at 86.3% at the end of the fiscal 24.
