Shares of Birlasoft Limited gained approximately 7 percent today and closed at a price of Rs 308. Ace Investor Mr. Ashish Dhawan holds 2,764,615 shares equating to a 1.01 percent stake in the company. The holding value of the investment sums up to around Rs 85 crores.
The surge in stock prices is observed after the company announced its Q4 as well as annual results for FY22-23. Details of the same are been discussed later on in the piece. In addition to the above, the company’s Board recommended a final dividend of Rs 2 (100 percent of its face value) for FY22-23.
Birlasoft Limited, headquartered in Pune, Maharashtra, is an IT consulting and product engineering services company that offers intelligent automation, supply chain management, customer relationship management, etc. The company serves various industries that include banking, capital markets, insurance, etc. It operates business across Asia, Europe, the Middle East, and the Americas.
A quick glance at the quarterly financials leads us to understand that the operating revenues have marginally increased from Rs 1,222 crores in Q3 v/s Rs 1,226 crores in Q4. On the other hand, the company turned around with a transition in PAT figures from losses of Rs 16 crores to profits of Rs 112 crores during the same time horizon.
On a yearly basis, the operating revenues moved up from Rs 4,130 crores during FY21-22 to Rs 4,795 crores in FY22-23. The PAT numbers, on a contrasting note, reduced from Rs 464 crores to Rs 332 crores in the same period.
The company has been able to generate decent returns for its stakeholders as far as the profitability metrics are concerned. The return on equity (ROE) increased from 15.76 percent in FY20-21 to 19.47 percent in FY21-22. Moreover, the return on capital employed (ROCE) took a shift from 22.98 percent to 26.44 percent.
According to the latest data available for the March quarter, promoters of the company hold a 41.08 percent stake in the company, and Foreign Institutional Investors (FIIs) hold a 11.47 percent stake in the company.
Written by Amit Madnani
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