BIRLASOFT LIMITED — Interim / Quarterly Report 2022

Jul 28, 2021

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July 28, 2021

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001. Scrip ID: BSOFT Scrip Code: 532400 Kind Attn: The Manager, Department of Corporate Services

National Stock Exchange of India Ltd., Exchange Plaza, C/1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai – 400051.

Symbol: BSOFT Series: EQ Kind Attn: The Manager, Listing Department

- Subject: Investor update for Q1 FY 2021-22

Dear Sir / Madam,

Please find enclosed the investor update for Q1 FY 2021-22.

Kindly take this on your record.

Thanking you.

Yours faithfully, For Birlasoft Limited Sneha Padve Company Secretary & Compliance Officer

Encl.: - As mentioned above.

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Classification: Public

Q1’FY22 Investor Update

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Investor update Q1 FY 2021-22

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Q1’FY22 Investor Update

Q1 PAT at ₹ 1,136 M; up 102% YoY

$ Revenue, up 4.1% QoQ, EBITDA up, 37% YoY

Pune, Noida (India), July 28, 2021 : Birlasoft [BSE: 532400, NSE: BSOFT], a part of the USD 2.4 billion diversified CK Birla Group , reported its unaudited consolidated financial results for the first quarter ended June 30, 2021.

Dharmender Kapoor, Chief Executive Officer and Managing Director, Birlasoft, said, “We have begun FY22 on a positive note with healthy growth and improved traction in our Enterprise Solutions business and net new wins. Our consistent QoQ growth, sustainable profitability, and continuous improvement in PAT are a testament to our value creation for shareholders. Keeping customer centricity at the core, we have reorganized and redefined our service lines to align with contemporary market demands and customer priorities in the hyper-digital and subscription economy. We are confident that the consolidation of our complementary service offerings under the three pillars of Business and Technology Transformation, Cloud and Base services, and Enterprise Solutions will allow us to be more agile and deepen our capabilities, thereby effectively addressing our customers' business needs.”

Key Financial Highlights for Q1 FY22

in US $ • Revenue at $ 128.4 M, up 5.9% YoY and 4.1% QoQ • EBITDA at $ 20.5 M, up 37% YoY and down 1.4% QoQ o Margin at 16.0%; up 363 bps YoY and down 90 bps QoQ • PAT at $ 15.4 M; up 106.6% YoY & 14.2% QoQ		in₹ • Revenue at ₹ 9,453 Million (M), up 3.4% YoY and up 4.7% QoQ • EBITDA at ₹ 1,510 M, up 33.7% YoY & down by 0.9% QoQ • PAT at ₹ 1,136 M up 101.7% YoY and 14.8% QoQ o PAT margin at 12%; up 586 bps YoY and up 106 bps QoQ

Other Highlights

• Signed deals of TCV $ 153 M during the quarter

• $ 94 M of new TCV wins in Q1

• Active Client Count at 291

• $ 5 M customer at 22; up by 5 YoY and $ 10 M customer at 10; up by 2 YoY

• Top 20 customers grew 14.6% YoY

• Cash & equivalents at $ 154 M (₹ 11,446 M), up $ 45.2 M YoY (₹ 3,230 M)

• DSO of 54 days, down by 6 days YoY and 2 days QoQ

• Headcount stood at 11,508 as of June 30, 2021, versus 11,051 in Q4’FY21

• Added 457 professionals QoQ and 1,600 on a YoY basis

• Attrition at 16.5% in Q1’ FY22 versus to 11.6% in Q4’FY21 & 16.5% in Q1’FY21

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Q1’FY22 Investor Update

Deal Wins for the Quarter

• Won IT managed services and support deal from a global Communication and Media Software major.

• Selected by a leading US Telecom major for financial accuracy and testing services.

• Selected by a Global Consumer Financial Services major for migration of Source-to-Pay and integrating upstream and downstream systems.

• Selected by a leading US medical device manufacturer for upgrade, migration, and roll out to the JD Edwards enterprise ERP stack.

• Won a deal from a global Ecological Transformation major for development, and support of the application services.

• Selected by a US Auto major for the rollout of SAP S/4 Hana Services.

• Chosen by a leading US medical technology company for SAP S4 Hana Greenfield implementation and Data Warehousing modernization.

• Chosen by a leading US technology services provider to global energy for implementation, roll out, and support of J D Edwards enterprise ERP stack across Latin America and the Far East.

Business Highlights & Recognition

• Birlasoft Fortifies its Cloud-First Strategy as an AWS Advanced Consulting Partner. Achieving AWS Advanced Consulting Partner status further strengthens Birlasoft’s cloud portfolio and will enable the company to leverage AWS to accelerate its enterprise clients’ digital transformation journeys.

• Birlasoft Wins Three Distinguished Oracle JD Edwards Partner Awards. The awards recognize Birlasoft in Product Innovation-Enterprise Integration, Cloud Centric-Oracle Cloud Platform, Customer Centricity-Bringing Customers back on JD Edwards categories

• Birlasoft and Regulativ.ai Co-Develop AI-Led Cybersecurity Assessment Platform for Global Banking, Financial Services, and Insurance Customers. The co-development of an AI/MLbased industry-revolutionizing platform will help customers streamline and automate their cybersecurity regulatory assessment and reporting, leverage the power of new-age digital technologies, deliver significant cost savings, and near real-time view of compliance to cyber regulations, as well as rich analytics.

• Birlasoft launches Pega® Center of Excellence to help customers drive CX and automation programs with AI-led technologies

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Q1’FY22 Investor Update

About Birlasoft

Enterprise to the Power of Digital[TM ]

Birlasoft combines the power of domain, enterprise, and digital technologies to reimagine business processes for customers and their ecosystem. Its consultative and design thinking approach makes societies more productive by helping customers run businesses. As part of the multi-billion dollar diversified CK Birla Group , Birlasoft, with its 11,500+ professionals, is committed to continuing the group’s 159-year heritage of building sustainable communities

For further information, visit www.Birlasoft.com

Contacts:

ntacts:	ntacts:
Vikas Jadhav Investor Relations +91 9545450975 vikas.jadhav@birlasoft.com
	Vikas Jadhav Investor Relations +91 9545450975 vikas.jadhav@birlasoft.com	Suma Nair Media Relations +91 9833084449 Suma.Nair@birlasoft.com

Disclaimer

Some of the statements in this update that are not historical facts are forward-looking statements. These forwardlooking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions, and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to the industry.

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Q1’FY22 Investor Update

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FACT SHEET

Q1 FY 2021-22

$ Rev Growth 4.1% QoQ

$ PAT Growth Q1 Deal wins 106.6% YoY TCV $ 153 M

Key Metrics

Revenues by

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Quarter Ended
Client Geography
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Americas 74.6% 77.1% 78.3% 79.0% 80.7%
Europe 14.9% 13.3% 13.0% 12.5% 11.8%
Rest of the World 10.5% 9.6% 8.7% 8.5% 7.5%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
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Revenue by Industry Verticals	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21	Q1 FY22
Manufacturing	38.4%	42.3%	42.1%	42.3%	44.2%
BFSI	17.4%	18.7%	18.7%	18.3%	17.5%
Energy& Utilities	15.5%	15.1%	14.8%	14.8%	14.9%
Lifesciences	28.8%	24.0%	24.4%	24.6%	23.4%
Total	100.0%	100.0%	100.0%	100.0%	100.0%

Revenue by Service Offerings	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21	Q1 FY22
Business & TechnologyTransformation	32.0%	33.8%	33.7%	35.5%	37.1%
Enterprise Solutions	48.2%	48.9%	46.2%	44.7%	43.1%
Cloud & Base Services	19.8%	17.3%	20.2%	19.8%	19.8%
Total	100.0%	100.0%	100.0%	100.0%	100.0%

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Q1’FY22 Investor Update

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Quarter Ended
Revenues by Contract Type
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Time & Material 47.8% 45.8% 42.3% 39.5% 41.6%
Fixed Price, Fixed Monthly 52.2% 54.2% 57.7% 60.5% 58.4%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
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Quarter Ended
Revenues Mix
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Onsite 56.0% 55.7% 55.3% 53.9% 51.4%
Offshore 44.0% 44.3% 44.7% 46.1% 48.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
Deal Wins - New Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Total Contract Value (TCV) - in $ M 89 120 56 162 94
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Quarter Ended
Currency Mix of Revenue
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
USD 76.2% 77.2% 78.5% 79.6% 81.0%
GBP 0.8% 1.6% 1.5% 2.0% 1.6%
EUR 10.9% 9.0% 8.4% 7.5% 6.9%
Others 12.1% 12.3% 11.6% 10.9% 10.5%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
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Quarter Ended
Exchange Rate (INR/USD)
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Period Average 75.44 74.16 73.73 73.23 73.65
Period End 75.53 73.79 74.33 73.11 74.33
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Client Data	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
	Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21	Q1 FY22
No of Active Clients	356	310	295	291	291
Clients added -QoQ	(22)	(46)	(15)	(4	) -
No of million$clients(LTM)
US$1mn+ Clients	85	81	81	76	77
US$5mn+ Clients	17	20	21	22	22
US$10mn+ Clients	8	9	9	9	10
Client Contribution to Revenue(LTM)
Top5	30.6%	31.9%	32.9%	32.8%	30.5%
Top10	42.5%	44.1%	45.0%	45.1%	44.4%
Top20	55.8%	58.5%	59.7%	60.7%	60.4%
LTM - last twelve months

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Q1’FY22 Investor Update

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Quarter Ended
Hedge Book
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
USD mn 55.1 70.4 73.0 83.0 95.4
Average rate in INR 75.1 76.0 76.3 76.5 76.0
GBP Mn 0.9 0.9 1.1 1.1 2.2
Average rate in INR 97.5 98.3 99.9 101.5 104.8
Euro Mn 5.6 5.0 5.8 7.8 10.7
Average rate in INR 84.9 87.3 89.0 91.4 92.0
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Quarter Ended
DSO
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Days Sales Outstanding - Billed 60 58 57 56 54
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Quarter Ended
Headcount Metrics
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Total Headcount 9,908 10,010 10,399 11,051 11,508
Technical 8,865 8,992 9,416 9,994 10,445
Sales & Support 1,043 1,018 983 1,057 1,063
Women Employees 2,208 2,215 2,331 2,466 2,556
Attrition (LTM) 16.5% 11.4% 10.9% 11.6% 16.5%
Utilization 78.2% 83.7% 85.6% 82.8% 85.0%
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Q1’FY22 Investor Update

Consolidated Income Statement for quarter ended June 30, 2021

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Particulars In $ M
Quarter Ended 30-Jun-20 31-Mar-21 30-Jun-21
QoQ YoY
Unaudited Audited Unaudited
Revenue from operations 121.2 123.3 128.4 4.1% 5.9%
Expenses
Employee benefits expense 70.9 72.8 75.5
Other expenses 35.4 29.7 32.3
EBITDA 15.0 20.8 20.5 -1.4% 37.0%
EBITDA Margin % 12.3% 16.9% 16.0% -90 bps 363 bps
Depreciation & amortization 2.9 2.4 2.5
EBIT 12.1 18.4 18.0 -2.0% 48.6%
EBIT Margin % 10.0% 14.9% 14.0% -88 bps 403 bps
Other income (net) (1.1) 0.7 2.9
Finance costs 0.5 0.4 0.4
Profit before tax (PBT) 10.6 18.7 20.5 9.9% 94.2%
Provisions for Tax 3.1 5.2 5.1
Profit after Tax 7.5 13.5 15.4 14.2% 106.6%
PAT Margin % 6.2% 11.0% 12.0% 106 bps 586 bps
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Particulars	In ₹ M	In ₹ M
Quarter Ended	30-Jun-20	31-Mar-21	30-Jun-21	QoQ	YoY
	Unaudited	Audited	Unaudited
Revenue from operations	9,146.3	9,028.6	9,453.2	4.7%	3.4%
Expenses
Employee benefits expense	5,345.4	5,327.9	5,560.1
Other expenses	2,671.4	2,176.8	2,382.5
EBITDA	1,129.5	1,523.9	1,510.5	-0.9%	33.7%
EBITDA Margin %	12.3%	16.9%	16.0%	_-90 bps _	363 bps
Depreciation & amortization	215.3	177.9	184.4
EBIT	914.1	1,346.0	1,326	-1.5%	45.1%
EBIT Margin %	10.0%	14.9%	14.0%	_-88 bps _	403 bps
Other income(net)	(81.2)	50.9	214.7
Finance costs	35.2	28.9	28.4
Profit before tax(PBT)	797.7	1,368.0	1,512.4	10.6%	89.6%
Provisions for Tax	234.2	378.3	376.0
Profit after Tax	563.5	989.7	1,136.4	14.8%	101.7%
PAT Margin %	6.2%	11.0%	_12.0% _	_106 bps _	586 bps

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Q1’FY22 Investor Update

Consolidated Balance Sheet Statement

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$ M ₹ M
Particulars as at
31-Mar-21 30-Jun-21 31-Mar-21 30-Jun-21
ASSETS (Audited) (Unaudited) (Audited) (Unaudited)
Non-current assets
Property, plant and equipment 17.6 17.2 1,287 1,275
Right-of-use assets 16.1 14.8 1,179 1,100
Goodwill 61.2 61.3 4,476 4,553
Other intangible assets 1.4 1.3 105 94
Financial assets
Investments - 4.0 - 300
Other financial assets 4.8 7.1 353 526
Income tax assets (net) 5.8 4.7 422 347
Deferred tax assets (net) 12.1 12.4 882 919
Other non-current assets 2.6 2.1 187 158
Current assets
Financial assets
Investments 7.6 20.1 553 1,496
Trade receivables 70.9 73.6 5,182 5,470
Cash and cash equivalents 63.8 48.8 4,661 3,630
Other balances with banks 78.9 76.0 5,769 5,647
Unbilled revenue 15.5 19.7 1,135 1,467
Other financial assets 8.6 6.2 627 458
Other current assets 42.8 48.7 3,125 3,616
TOTAL ASSETS 409.6 417.9 29,944 31,057
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Particulars as at	$ M	$ M		₹ M	₹ M
	31-Mar-21	30-Jun-21		31-Mar-21	30-Jun-21
	(Unaudited)	(Audited)		(Unaudited)	(Audited)
EQUITY AND LIABILITIES
Equityshare capital	7.6	7.5		555	555
Other equity	290.6	303.0		21,245	22,523
Liabilities - Non-current
Financial liabilities
Lease liabilities	13.7	12.7		999	940
Other non current liabilities
Provisions	11.0	11.8		803	875
Current liabilities
Financials Liabilities
Borrowings	-	-		-	-
Tradepayables	18.0	22.8		1,318	1,695
Lease liabilities	3.9	3.6		282	269
Other financial liabilities	28.7	20.2		2,099	1,498
Other current liabilities	25.4	24.8		1,853	1,840
Provisions	3.2	3.1		237	233
Income tax liabilities(net)	7.6	8.5		554	629
TOTAL EQUITY AND LIABILITIES	409.6	417.9		29,944	31,057

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Q1’FY22 Investor Update

Consolidated Cash Flow Statement for Q1 FY22

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30 June 2021
Particulars $ @ 74.3
₹ M
$ M
Profit before tax 1,512 20.5
Items to reconcile profit before tax to net cash flows
Add: Non cash Items
Depreciation of property, plant and equipment & amortization
of intangible assets 184 2.5
Share based compensation expenses 2 0.0
Allowance for doubtful debts-trade receivables (net of recoveries) 24 0.3
Unrealized foreign exchange loss/ (gain) 140 1.9
Interest on lease liabilities 25 0.3
Less: Interest & other items
Interest income (80) (1.1)
Others (6) (0.1)
Operational cash profit 1,802 24.4
Movements in working capital (1,339) (18.0)
Cash Generated from Operations 463 6.4
Income tax (paid) / received (238) (3.2)
Net cash flow (used in)/from investing activities (1,282) (17.2)
Net cash flow (used in) financing activities (97) (1.3)
Balance Cash Flow (1,154) (15.3)
Total Increase/(Decrease) in cash balance (1,154) (15.3)
Opening cash balance 10,430 142.7
Foreign exchange fluctuation (2.5)
Total Cash balance 9,276 124.8
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Q1’FY22 Investor Update

Q1 Earnings Conference Call on July 28 2021 at 6.30 p.m. (IST)

Dial in Information

India 18:30 IST. Hong Kong / Singapore – 21:00; London 14:00; New York 9:00 am

Universal Dial In	India +91 22 6280 1179 India +91 22 7115 8840
India National Toll Free	India 1 800 120 1221 India 1 800 266 1221
International Toll Free	Hong Kong 800964448 Germany 0080014243444 Singapore 8001012045 UK 08081011573 USA 18667462133
International Toll	Hong Kong +852 30186877 Singapore +65 31575746 UK +44 2034785524 USA +1 3233868721
Playback Start Date:28thJuly2021 Playback End Date:31stJuly 2021	Playback Code: 89639 Dial-in Number:India (+91 22 71945757) India (+91 2266635757)

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