Shares of Birlasoft rose to 6.5% on November 1 after the IT company posted strong growth in its revenue and profit after tax (PAT) for the second quarter of the 2023-24 financial year.

Birlasoft’s PAT stood at Rs 145.1 crore for the September 2023 quarter, a 26% year-on-year increase from Rs 115 crore reported in the corresponding quarter last year. On a sequential basis, the profit grew 5.5% from Rs 137.5 crore in the quarter ended June 30, 2023. 

The Pune-headquartered company reported a 5.7% YoY and 3.1% quarter-on-quarter (QoQ) revenue growth in the quarter under review in rupee terms to Rs 1,309 crore. In US Dollar terms, the revenues grew 3.1% QoQ at $158.3 million compared to $153.6 million in the previous quarter.

The earnings before interest and tax (EBIT) of the global IT services provider grew 7.25% sequentially to Rs 207.1 crore, with the EBIT margin advancing 50 bps to 15.8% in Q2FY24, despite the underlying impact of salary hikes for a month.

During the July-September quarter of the current fiscal, Birlasoft signed deals of a total contract value (TCV) of $271 million, shooting up 63% on a YoY basis. At the same time, the net new deals during the same period increased by 110% sequentially to $167 million.

Birlasoft shares jumped to an intraday high of Rs 583.30, up 6.5% from the previous closing price on the National Stock Exchange (NSE). The scrip closed at Rs 573, 4.63% higher than the last close price.