Unveiling Birlasoft Limited: Revamping Organization Structure For Growth

“The macroeconomic environment is relatively subdued. And there are of course challenges in some of the sectors that I am sure, you all know about. We will expect slow client decision making as we go into the next couple of months, as their business priorities shift, and the landscape also shifts. Conversations with clients indicate that their organizations will continue to spend on IT, but the spending would be to drive more improvements and operational efficiency and cost efficiency rather than transformation work. Consequently, the outlook for the coming year is one of growth, although the gap that is created due to the absence of contribution from Invacare means that on reported terms overall top-line growth may look a little muted.”
-Angan Guha, CEO & Managing Director

Stock Data

Ticker	BSOFT
Industry	IT
Exchange	NSE & BSE

Share Price

Last 1 Month	3.8%
Last 6 Months	20.3%
Last 12 Months	-5%

Business Basics

Birlasoft Limited is a global IT services and solutions company that specializes in digital transformation, IT consulting, and business process management. The company has a strong heritage and is backed by the renowned Birla Group. With a wide range of services, Birlasoft serves clients across various industries. The company’s primary focus is on helping organizations embark on their digital transformation journey. Birlasoft leverages cutting-edge technologies such as cloud computing, artificial intelligence, machine learning, and automation to assist clients in reimagining their business processes, enhancing customer experiences, and driving operational efficiency through digitalization.

Birlasoft also provides comprehensive IT consulting services to help clients align their technology strategies with their business objectives. This includes strategic guidance, technology assessments, solution design, and implementation support. By offering these services, Birlasoft enables clients to make informed decisions and optimize their IT investments. In addition, Birlasoft has expertise in managing and optimizing business processes across various domains. The company helps clients streamline their operations, improve productivity, and achieve cost efficiencies through process reengineering, workflow automation, and performance monitoring.

With a focus on specific industries such as banking and financial services, insurance, manufacturing, healthcare, retail, and energy, Birlasoft combines industry-specific knowledge with its technical expertise to deliver tailored solutions. This approach allows the company to address unique business challenges and opportunities in each sector. Birlasoft emphasizes innovation and research to stay at the forefront of technology advancements. The company invests in research and development, collaborates with leading technology partners, and fosters a culture of innovation within its workforce. This enables Birlasoft to deliver innovative solutions that drive business growth and create a competitive edge for its clients. The company operates a global delivery model, leveraging its offshore development centers, strategic partnerships, and a strong presence in key markets. This model ensures efficient project execution, seamless collaboration, and cost-effective delivery. As a result, Birlasoft is able to serve clients across geographies and time zones.

Q4 FY23 Financial Performance

Birlasoft Limited reported Total Income for Q4 FY23 of ₹1,224.08 Crore remains flat from ₹1124.06 Crore year on year. Consolidated Net Profit of ₹112.16 Crore, down 16% from ₹132.89 Crore in the same quarter of the previous year. The Earnings per Share is ₹4.07 in this quarter. At the end of Q4, cash and bank balances totaled ₹466.85 crore. Meanwhile, this quarter’s operating cash flow was ₹560.92 crore. This demonstrates healthy cash flows and the company’s capacity to make the investments required to drive business expansion.

Birlasoft’s Industry Wise Revenue

Birlasoft Limited generates revenue across multiple industries, demonstrating its diverse capabilities and expertise. The company has a strong presence in the following industry segments:

Banking, Financial Services, and Insurance (BFSI): Birlasoft serves the BFSI sector by providing innovative IT solutions and services. This includes digital transformation initiatives, core banking system implementation, risk management, compliance, customer experience enhancement, and data analytics. The company helps financial institutions streamline operations, enhance security, and improve customer engagement in an increasingly digital-driven landscape.

Manufacturing: Birlasoft offers comprehensive IT solutions tailored to the manufacturing industry. These solutions cover areas such as supply chain management, enterprise resource planning (ERP) implementation, product lifecycle management, quality management, and plant automation. By leveraging technology, Birlasoft enables manufacturers to optimize their processes, improve productivity, reduce costs, and accelerate time-to-market.

Energy and Utilities: Birlasoft has extensive experience in serving the energy and utilities sector. The company offers IT solutions that address the unique challenges faced by power generation, transmission, and distribution companies. Birlasoft’s expertise includes asset management, smart grid solutions, energy trading and risk management, billing and revenue management, and customer relationship management. The company helps energy and utility companies improve operational efficiency, enhance grid reliability, and drive sustainable growth.

Life Sciences: Birlasoft provides IT solutions and services to the life sciences industry, including pharmaceuticals, biotechnology, medical devices, and healthcare providers. The company assists in areas such as regulatory compliance, drug safety and pharmacovigilance, clinical data management, electronic health records, and patient engagement solutions. Birlasoft’s expertise in life sciences enables organizations to meet industry regulations, accelerate clinical trials, enhance patient care, and improve overall operational efficiency.

Revamping Of Birlasoft’s Organizational Structure

The management has already restructured the organization, aligning operations with verticals. The four verticals of Manufacturing, BFSI, Energy Utilities, and Life Sciences will make up the North American region, which accounts for nearly 85% of the company’s global revenues. There will be a P&L leader for each of these verticals, who will be in charge of the P&L and report to the CEO for North America. Separate leaders will be in charge of Europe and the rest of the world, and their task will be to increase the company’s presence in those regions. Birlasoft will also have a Chief Growth Officer, whose duties will include leading the development of marketable solutions, forging strategic alliances, advancing the sector, expanding advisory outreach, and overseeing the marketing department.

The management of the India organization has appointed a Chief Operating Officer organization that reports to the COO. Additionally, the COO will be in charge of managing the CIO, InfoSec, and CTO functions as well as all delivery, capability building through service lines. As a result, this restructuring should result in the creation of a single delivery organization that is closely related to the geography organization and reports to the Chief Operating Officer.