Birlasoft beating reds; up by 200 per cent in 2020
Birlasoft has multiple verticals including energy, manufacturing, banking, financial services & insurance (BFSI). The company also provides digital transformation and integrated solutions to enterprises. The contribution from these verticals is divided and is not dependent on one particular industry thereby, making it a diversified portfolio.
On a YoY basis, its net sales reported in FY20 were Rs 3,290.97 crore, an increase of 29.02 per cent from the previous figure of Rs 2,550.67 crore in FY2019. Its operating profit also showed an increase in the recent quarter compared to the previous year’s quarter. Operating profits were Rs 88.37 crore in Q2FY20, and Rs 125.89 crore with a hike of 42.46 per cent reported in Q2FY21. Its net profit also showed an impressive increase of 69.31 per cent in Q2FY21. On a QoQ basis, from March 2020 to September 2020, we saw an increase in its net sales by 0.8 per cent. The company showed an increase in net profit. However, net profit and operating profit has witnessed a slump of more than 20 per cent.
According to its Q2FY21 report, on a YoY basis, the company reported an increase of 60 per cent in profits after tax while EBIT saw a jump of 43.9 per cent.
Birlasoft has performed well on the market with an increase of 200 per cent from Rs 71.55 per share to Rs 214.65 per share. The company had bulk deals with ICICI Prudential Mutual Fund, Invesco Mutual Fund, and Aditya Birla Sun Life Mutual fund, buying 0.72 per cent each at Rs 205.15 per share. Edelweiss Retail Finance bought 0.68 per cent at Rs 974 per share.
Birlasoft had many strategic partnerships in November, some of them being Esker, Namaste Credit, and Incorta. They earned accolades for their social initiative with Project Shodhan.
A debt-free company with a ROCE of 19.34 has proved an attractive buy in the recent period. The stock is up by more than 6 per cent on Tuesday, trading at Rs 214.55 per share and beating the bearish rally that was witnessed on Monday.