Ashish Dhawan portfolio: Birlasoft declares 100% dividend, net profit falls 18% in Q4

Birlasoft Ltd is a mid cap IT company recorded a market cap of ₹7,912.15 Cr during today’s closing session. Being a part of the multibillion dollardiversified The CK Birla Group, Birlasoft has declared its Q4 and FY23 earning along with a dividend of 100%.

The Board of Directors have approved “Recommendation of final dividend of Rs. 2/- per equity share of face value of Rs. 2/- each (100%), for the financial year 2022-23, subject to declaration of the same by the members at the ensuing Annual General Meeting (“AGM”) of the Company. The date of AGM shall be intimated in due course, and the dividend, if declared by the members, will be paid within the statutory timelines,” said Birlasoft in a stock exchange filing today.

During the quarter ended March 2023, the company recorded revenue from operations of Rs 1101.4 Cr down by 10.19% YoY from ₹1226.4 Cr recorded during the quarter ended March 2022. The company reported an EBITDA of ₹174.5 Cr during Q4FY23 down by 4.50% YoY from ₹167 Cr recorded during Q4FY22. Birlasoft said its net profit stood at Rs 132.9 Cr during the quarter under review down by 18% YoY from ₹112.20 Cr during year-ago quarter.

Mr. Angan Guha, Chief Executive Officer and Managing Director, Birlasoft, said, “We are pleased to report a strong operating quarter with robust revenue and EBITDA margin performances in continuing business. Deal signings during the quarter at $286 million TCV have been the best during the year under review. The solid fundamentals of our business, the investments being made in enhancing our capabilities, and the momentum with which we are entering the new financial year positions us well to meet the challenges of an increasingly uncertain macroeconomic environment and shifts in customer priorities going forward.”

“Revenues for the financial year FY’23 have grown 16.1% to ₹47,948 million, and cash flow from operations were 100% of adjusted EBITDA on the back of sustained focus on collections resulting in best-in-class DSO of 53 days. We have ended the year with a robust balance sheet and believe that a restructured organisation, sharper focus, and disciplined execution should position us well to successfully navigate through the prevalent macroeconomic environment,” said Ms Kamini Shah, Chief Financial Officer, Birlasoft.

The shares of Birlasoft closed today on the NSE at ₹288.05 apiece up by 2.27% from the previous close of ₹281.65. The stock touched a 52-week-high of ₹419.10 on (05-May-2022) and a 52-week-low of ₹250.25 on (03-Feb-2023). During Q4FY23, the company reported a promoter shareholding of 41.08%, FIIs stake of 11.47%, DIIs stake of 21.20%, public stake of 26.17% and other stakes of 0.08%. As per the shareholding pattern of Birlasoft, ace investor Ashish Dhawan held 27,64,615 shares or 1.01% stake in the company during Q4FY23.

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