Questions across 9 calls

Angan Guha

Firm not listed in source transcripts

BIRLASOFT LIMITED

BIRLASOFT LIMITED CC-May26.pdf · 2026-05-06

Girish, thank you for your question, and thank you for your interest in our company. If you really analyse our 6.5% degrowth , like we called out, a part of it was because we ourselves walked away from some revenue that was not profitable, right? So that is one. Second, like I said, because a lot of our deals are now AI related, where we have to give productivity benefits right up front, that also dented our revenue. And quite frankly, we were not able to win too much business to compensate for the negativity that happened, which are very account specific. Now going forward, as you know, Girish, we do not give ou t guidance. But if you look at the investments that we have made, we've gotten a large number of leaders who have come in at the leadership level, like a new leader for our Life Sciences vertical, a new leader for ERP, which has not been doing well over the last so many quarters. We've got a new leader in Vikram himself. So we've got a lot of new leaders. Even the sales motion, like I said, almost we'll have a 40% increase in our sellers in the market. So we are hoping with that, our pipeline will improve, our order book will improve and eventually the revenues will improve. So we are hoping that the bad news is behind us now and FY’27 will be better for us. Now , we will not give a guidance in terms of how much revenue going forward, and the market is also very volatile, but at least we are getting the input parameters corrected, Girish.

So in order booking, Girish, as you know, H1 is always soft and H2 is better from an order booking perspective. I don't see that changing. From a revenue standpoint, it's hard to say at this stage. But our endeavour will be to first get the pipeline fixed and getting the order booking going. Revenues will automatically follow.

BIRLASOFT LIMITED CC-Feb26.pdf · 2026-01-28

Sandeep, thank you for your question. Your analysis is exactly right. As you would have seen, even in the last quarter and this quarter, our endeavor has been to move away from staff aug and do more outcome -based work. Our clients are also challenging us to do more outcome -based work. And some of the deals that we have won last quarter as well as this quarter are really fixed- priced work. As a result, moving to offshore is easier for us, and that is reflected in the results that we have delivered. From a volume perspective, mathematically, yes, you are correct, the volume growth is higher, but since the offshore ratios are higher, that obviously suppresses growth, but improves margins.

Sandeep, though Manufacturing has shown growth this quarter, we must not take that as a winning story, quite frankly. In my mind, the Manufacturing business will continue to show headwinds even in 4Q. There will be softness. You see the growth in Manufacturing and also ERP, because both businesses are quite related, because of some deals that we had won earlier, and we got to ramp them up now, and as a result, the revenue realization has happened. But that is more one time. Sustainably, I think Manufacturing will continue to face headwind, at least for one more quarter. And I expect the Manufacturing business to turn around sometime Q1 or Q2 onwards for the next financial year. We strongly believe that E&U and Financial Services will continue the growth momentum. As you know, this was a furlough quarter, so optically you are seeing a degrowth in Financial Services. But I believe Financial Services will be steady in 4Q, and next year definitely we will see growth. Similar goes for E&U. Manufacturing will be a lot of headwind. Similarly, like we have always said, our Life Sciences business is more a med devices business, which is also really Manufacturing. So, that holds true for Life Sciences as well. In Life Sciences, I feel there will be headwind in 4Q. And hopefully, in the next Q1 of next financial year, we should see it stabilize and then grow Q2 onwards.

BIRLASOFT LIMITED CC-Nov25.pdf · 2025-11-06

So, Sudheer, let me answer both the questions. But first, let me answer the first question. Like I said, optically, though our signings are looking lower this quarter , two deals which were committed to us, have got pushed out to next quarter from a signing perspective. There are no delays on those projects. It is only that we couldn't sign the deals as of 30th of September. That is point number two. Point number three, the reason what gives us the confidence that Q3 will deliver growth even in a seasonally weak quarter, considering that the furloughs remain at the same levels as last year, which I think it will remain because we have not heard otherwise from the client, is the fact that we had won a couple of deals, if you remember, in Q4. Those transitions are now over and those revenues will start flowing in, which gives us the confidence that Q3 will be a much healthier quarter from a revenue growth perspective than what we have seen in Q2. Now, what was the second question, Sudheer? Sorry, I forgot the second question.

Yes, that is the right understanding, Sudheer.

BIRLASOFT LIMITED CC-Jun25.pdf · 2025-08-07

Girish, thank you for, your interest and thank you for asking me that question. Look, we are working towards a sequential growth in Q2, and our focus currently is Q2. We are working with our teams and with our clients to see how we can deliver sequential growth in Q2. Now, it'll all depend upon how my order book stacks up for Q2, as I'm sure you've seen. And I mentioned in the call, in Q1 we delivered about $141 million worth of orders. One order slipped into Q2, which is now getting signed. So hopefully in Q2 we'll have a larger order book, right? Now if we really deliver a larger order book then barring the furloughs, I think operationally we can show some growth, but that will all depend upon how the Q2 order book looks like. It's hard for me to say whether Q3 will really be a growth quarter today, because of the uncertainty that we are facing, but our job is going to be to focus on order book and deliver higher order book which will make sure that the revenue growth comes in subsequent quarters.

Here is how I'm seeing it play out. As you know, Q1 and Q2 are quarters which generally are a little lower in terms of order book because that's how our seasonality works . In Q3 and Q4, the renewals are very heavy. We are not anticipating at this point in time and again , I stress at this point in time, that our renewals will be at a lower margin. Our renewals will be at our current margin at the minimum. And in certain cases we may get a little bit of an extra margin even in our renewals business. However, what will happen though is, in our new deals, and I also talked about two or three big deals that we are working on in the range of about 30 million to 50 million, those deals will definitely come at a lower margin. So, for us as a management team it'll be important to first of all win those deals, secure those deals, and deliver. And also work on our overall cost theme so that we can sustain the margins at the current levels.

BIRLASOFT LIMITED CC-Mar25.pdf · 2025-05-29

And just to add to what Kamini said, Ravi, for us, this trend will continue for may be one more quarter and towards the fag end of Q2 you will start seeing the movement back to offshore.

On the revenue, it is hard for me to comment right now in terms of how things will shape up , because there is uncertainty. So, Ravi, for us, the two big issues that have hit us , one is, like I was saying in my commentary, we have not lost the account, but in some of our larger accounts, especially within Manufacturing as well as Healthcare, we have seen some amount of in - sourcing and some amount of project closures , because our clients are also looking at the situation with a little bit of caution. And that has resulted in our revenue downtick, if you will. So we are watching the space. We feel currently, as we stand, our Q1 revenues will also be muted. We are trying to keep it flat. There could be minor degrowth as well. We don't know that yet. But our entire endeavor would be that we get growth back in the company by Q2.

BIRLASOFT LIMITED CC-Jun24.pdf · 2024-07-31

So Krish, look, and you've asked 4 questions , let me try and answer all of them one by one. So first of all, on the revenue side. So look, we've had a subdued quarter. And I will admit that the quarter was below par as far as our own estimates were concerned. But look, you must also appreciate that this quarter has come on back of 5 quarters of sequential growth and year -on- year growth. And even this quarter, if you look at year -on-year, we've actually grown 3.8% from a dollar CC perspective and almost 5.1% from a rupee standpoint. Now the good news is and the reason for this performance, sort of subdued performance, is because some of the projects that we expected to start this quarter were pushed out to the future quarters. Now since we are already in 1st August and one month has gone by, for this quarter, we are happy to state that some of these delays that had happened earlier is already back on the table, not maybe all of it, but some of it is already back. Now look, we ca nnot give a complete guidance, and we really don't give guidance. So I can't tell you how much recovery we will do for the quarter, but I can only tell you that quarter 2 will be stronger than quarter 1. By how much. that only time will tell. It will depend upon how we execute between July, Aug ust and September. So that's point number 1. Point number 2 is, you talked about the pass -throug h. But look, I want to clarify this thing a little bit more. See, if you look at our business, our business mix is really changing. Our business mix is go ing from digital, which is a very strong business for us , to more of the infrastructure business. And that is because if you look at our customers ’ spend pattern, it is moving from transformation engagements to a more cost -based engagement. So naturally, our infrastructure business is really going up. Now as a part of the infrastructure business, we are doing contracts for our clients where we are doing end -to-end contracts, right, including services, including licenses, products, et cetera. On a turnkey basis, when we do programs for our customers, we obviously do the entire nine yards. So that is the reason why you are seeing not only our Infrastructure business growing, but some of the equipment that we buy, we just buy to service our clients . So that is answer number 2. Number 3, you asked about the EBITDA performance. Now clearly, quarter -on-quarter EBITDA is down, I accept that. But on a PAT basis year -on-year again, we have grown. So that's a positive sign. Now how much of that EBITDA will come back in Q2, again, will depend upon how much revenue growth we deliver in Q2. Because as you know, our business is so high on operating leverage that unless you grow revenue, you can't make the money. So we'll be focused on revenue growth. Now in terms of whether we will be able to keep our margins in a narrow band, again that will depend upon the investments that we will make. We will continue to make investments in our business. Like I always said, we are not here for one quarter or two. We are here to the build business for a decade. So we will not hold back on investments. But what we will focus on is delivering quarter -on-quarter improvement in revenue, which automatically will have an impact on our margins. Last question you had was on the -- I think you had on -- was there any other question, Krish?

Yes, deal wins. Look, I mean, if you ask me, the deal wins were higher than the last year same quarter. Last year same quarter, we delivered $ 146 million of TCV. This quarter, we delivered $160 million. So are we pleased with the current levels? Obviously not. I think we'll need to win much more deals, but the good news is our pipeline continues to grow. But the decisions are also getting delayed. I can only tell you that even from a deal win perspective, Q2 will be better than Q1.

BIRLASOFT LIMITED CC-Mar24.pdf · 2024-04-29

From our perspective, the clients that we serve, we don't see any material changes from what we were seeing about one year ago. There was a lot of volatility about one year ago, there was volatility two quarters ago, there was volatility last quarter, and we saw a lot of volatility this quarter as well. Going forward, Ravi, our belief is the volatility will continue. It will be more of the same. So there is no material changes. But you must also appreciate, this is a year where 60 countries are going into election, right? The big countries that we serve, the United Kingdom, the United States, India are all in an election mode. So it is very difficult for us to kind of conclude in terms of how the economy will move. When we speak to our clients, our clients say that it's more of the same, it's not improving. Whether it will deteriorate or not, it is hard to say. So our endeavor, Ravi, will be to continue to focus on execution. We've delivered a strong year and we want to continue to focus and try and deliver above the industry average growth.

So Ravi, from a BFSI perspective, clearly, account mining is working. We're creating larger and larger accounts. Now we have a very large account in BFSI which is doing well for us. We are also opening a couple of new logos, which has helped us bounce back in 4Q. If you remember, in 3Q, we had a little bit of softness in BFSI because of the seasonally weak quarter, a lot of furloughs happened in 3Q. But in 4Q, we have bounced back. I'm bullish about BFSI, in general, I've always have been bullish. I think BFSI will continue to drive a lot more growth. But like I keep saying, for us, BFSI is a very small business. So from that perspective, we need to win much more, and we will win much more. But we are quite pleased with our performance in BFSI last year.

BIRLASOFT LIMITED CC-Sep23.pdf · 2023-10-31

So, Apurva, first of all, thanks for attending the call and thanks for asking the question. The large deal, like I said, is in one of our existing clients. So, we know the client well, we’ve worked with the client for many years. So, we understand the client’s landscape significantly well. The client has trusted our past execution capability and has given us an opportunity to do a large piece of work. Now, this has a combination of existing as well as net new and I can only say that net new is significant. I can't give you precise numbers because as you can imagine, I'm under NDA from the client and as a result , we can’t talk about the client’s name or which industry it belongs to. But suffice to say that it is a client that we know of . Now, I feel the reasons Apurva, why we won the deal are three: 1) we have executed flawlessly with the client over the last year or so; 2) we were able to gain the customer's confidence when it came to the application maintenance and the modernization bit of it ; and 3) our ability to move the application of the cloud played a pivotal role. So, from a combination of great execution in the past, great relationships that we have built with the client and our ability to display some of the great capability both around the core modernization and the cloud migration helped us win the deal. We displaced an existing vendor and the vendor is a Tier 1 vendor. Obviously, I can't give any more details around this . Now, we don't talk about individual margin profiles, but suffice to say the current deal that we picked up was higher than the current account margins.

So, Apurva, you would recollect that I've always maintained that we will exit this year , 4Q, at 16% EBITDA, right? Our 3Q will be muted and I will admit 3Q is a shorter quarter. It has got furloughs and it's an industry phenomena. So, 3Q will be muted for us, as it will be for the industry. But what we are committed to as a management team is to exit 4 Q with a 16% EBITDA. Now in the medium to long term, I would like to keep the company in that range of 15.5% to 16.5% EBITDA range as we invest for future growth. See, we are still in an investment phase. You know we are going to hire more leadership. We are going to sharpen our domain. We are going to create newer and newer service lines and internally we are also investing in our own tech transformation which is investing in technologies and tech stacks that we use to run our company. And like I keep saying, we are here to build a long term sustainable profitable business and n ot necessarily a quarter-on-quarter business. So, my sense is if I can get to an industry level growth and keep the margin at the narrow band of 15.5% to 16.5% or maybe even to the 17% ranges, I think that will be a good solid execution on our part.

Glenmark Pharmaceuticals Limited

Glenmark Pharmaceuticals Limited CC-Dec24.pdf · 2025-02-11

Ravi, thank you for that question. Like I mentioned and Kamini also alluded to the fact that unlike the previous years, this year we have seen more furloughs than usual. And some furloughs have come in a little late in the quarter, which kind of drove a little bit of muted performance. And the furloughs came in even from the verticals where we had not seen furloughs earlier. So it's a one-off situation but just to answer your question, Ravi, the furloughs are extending into January as well. And since January is already over, the furloughs we've already acco unted for. So that will show a little softness in revenue in Q4 as well. But, like I said, we will concentrate on executing in the quarter and see how much we can mitigate from those furlough impacts and see how the quarter goes. Our focus will clearly be on order booking. You saw a good order booking performance in Q3, and we would like to repeat the same order booking performan ce in Q4 as well.

Yes. So we are in discussions, Ravi, with a new logo in Europe where we think we can close a reasonable sized – I will not call it a large deal, it is a reasonable sized deal given the size of our company, from our company standpoint, it will be…but it will be a marquee deal. We are still talking about it. We are confident on that. And if that gets concluded, we are confident of repeating the same performance as Q3 in Q4 in terms of order booking.