Pune: Birlasoft [BSE: 532400, NSE: BSOFT], a part of the USD 2.4 billion diversified CK Birla Group, reported its unaudited consolidated financial results for the third quarter ended December 31, 2020.

Dharmender Kapoor, Chief Executive Officer and Managing Director, Birlasoft, said, “Birlasoft has delivered a strong financial performance in Q3 FY’21 and has hit the 15% EBITDA margins, earlier than planned. With a clear focused strategy on customer centricity and aligning our sales and delivery in key accounts, we have been able to show a ~20% YoY growth in our top accounts. With the markets showing a steady improvement, our strategic investments in our digital transformation and cloud strategies are starting to pay off with new deal wins. Recognition for our brand from industry analysts and other esteemed forums reinstate our belief that we are heading in the right direction.”

Key Financial highlights for Q3 FY21

Other Highlights

·         Signed deals of TCV $ 109 M during the quarter

·         Active Client Count at 295, down 86 YoY and down 15 QoQ

o  $ 5 M customer at 21; up by 6, YoY

o  $ 10 M customer at 9; up by 3 YoY

·         Cash & equivalents at $ 138.3 M (₹ 10,108 M), vs $124.3 M in Q2; up $14 M QoQ

·         DSO of 57 days, down by 8 days YoY and 1-day QoQ

·         Birlasoft has switched to the New Tax regime in Q3 for FY 21

o   Effective Tax Rate (ETR) improved 250 bps QoQ

·         Manpower strength of 10,399 as at 31^st December 2020 versus 10,010 in Q2’FY21

o  Added 389 professionals QoQ

o  Attrition at 10.9% in Q3’ FY21 versus to 20.3% in Q3’FY20 & 11.4% in Q2’FY21

Deal Wins for the Quarter

·         Selected by a leading US Medical Technology Company for Optimizing its Program Management Centre.

·         Won a Managed Services deal from US Auto Major.

·         Chosen by a US Healthcare major for providing Master Data Management services using Data-as-a-service (DaaS) model.

·         Selected by a Medical equipment major to implement SAP Hybris which would help enhance its customer experience and support global customer and dealer interface portal.

·         Selected by a Global Auto Major to upgrade, implement and support the Oracle R12 stack.

·         Chosen by a leading Global Business Process Services Company deal for implementation of Enhanced Technical Information Management System and integration of warranty system.

·         Selected by a Depositary Major for Application Modernization Services.

·         Awarded by a Global Rating agency deal for Enterprise Risk Solution and Analytics services.

Business Highlights & Recognition

·         Birlasoft was recognized as India’s Most Admired & Valuable Power Brand Company for the year 2020, at the India Leadership Conclave & Awards 2020.

·         Birlasoft named one of the Booming 15 (Global Market) in the 4Q20 Global ISG Index™. Birlasoft has been featured in the Global ISG Index for three times, this fiscal year.

·         Birlasoft teams up with Esker, a worldwide leader in AI-driven process automation solutions and pioneer in cloud computing, to offer Esker’s comprehensive suite of Procure-to-Pay (P2P) and Order-to-Cash (O2C) automation solutions to enterprises globally.

·         Birlasoft and Incorta have entered into a partnership to help organizations transform voluminous data into actionable insights with high speed and accuracy. The partnership enables access to data from across organizations and a streamlined ERP journey for faster, smarter and more valuable business insights

·         Birlasoft and Namaste Credit have partnered to help bank and non-bank lenders digitally transform their operations with AI-driven solutions that automate onboarding, underwriting and risk monitoring

·         Birlasoft receives SABERA 2020 Award for its community-benefiting Initiative – Project Shodhan. Project Shodhan was set up in 2017 with the aim of achieving zero crop residue burning in the villages of Indian states of Punjab, Haryana, Uttar Pradesh, and Rajasthan. In four years, the initiative has covered 61 villages and 53,000 acres of agricultural land in these “wheat bowl states”. This is the third time in a row that Project Shodhan has been acknowledged and appreciated by the SABERA jury members.