Q2 2025 Birlasoft Ltd Earnings Call Transcript
Key Points
- Birlasoft Ltd (BOM:532400) reported a sequential revenue growth of 3.1% in rupee terms and 2.6% in dollar terms for Q2 FY25, indicating a rebound in revenue performance.
- The company experienced strong growth in its manufacturing and ENU verticals, with both sectors growing by 4.7% quarter-on-quarter.
- Birlasoft Ltd (BOM:532400) continues to generate strong cash flow, with a cash and bank balance of $221.8 million at the end of Q2, reflecting a 27.8% increase.
- The company's digital and data business registered a strong rebound, growing 6.6% quarter-on-quarter.
- The proactive deal pipeline remains healthy, with 50% of deals coming from either existing new or net new clients, indicating potential for future growth.
- The company's EBITA margin dropped to 12.1% in Q2 FY25 from 14.7% in the previous quarter, partly due to pricing flexibility and increased on-site work.
- Birlasoft Ltd (BOM:532400) faces challenges in its life sciences vertical, which has been underperforming and is expected to remain soft for a couple more quarters.
- The demand environment remains challenging, with client budgets on hold and uncertainty due to the upcoming US elections.
- The company anticipates a muted Q3 due to seasonal furloughs and a planned salary hike, which will impact margins further.
- Despite a healthy pipeline, customer decision-making delays have affected the company's TCV performance, with a need to improve deal flow in the coming quarters.
Ladies and gentlemen, good day and welcome to Birlasoft's Q2 FY 25 post results conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Abhinandan Singh, head Investor Relations, Birla Soft Limited. Thank you and over to you, sir.
Thank you and welcome folks. By now you have received or seen our results. Those are also available on our website www dot Birla soft.com. Joining me on this call today are our CEO and MD, Mr Angan Guha and our CFO Mrs Kamini Shah. As usual, we'll begin the call today with opening remarks from both Angan and Kamini.
And then we will open up the floor for your questions. But before I hand
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