Birlasoft’s Consolidation Complete; Looking To Accelerate: Anand Rathi Initiates Coverage

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Anand Rathi Report

After the splitting off (Birlasoft Ltd. and KPIT Technologies Ltd.), Birlasoft’s revenue in FY20 slid 2% (despite benefitting from the Invacare deal) as the company was integrating KPITs business into Birlasoft.

During the pandemic (Q4 FY20 to Q2 FY21), revenues declined 4% (compounded quarterly), with energy and utilities (15% of revenue) taking the largest hit followed by healthcare (24%).

The $240 million Invacare deal in the healthcare vertical cushioned the decline.

The company has signed deals of $332 million in the past twelve months.

The pandemic-related discounts are over, and it has improved its annuity business, which is now ~67% (from 50% at the time of the split), thereby reducing volatility.

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