Shares of Birlasoft jump by 5% and hit a 52-week high; here’s why

Today the Sensex closed approximately 0.44% lower and the BSE Information Technology index also closed down by 0.75%. However, one IT stock stood out reaching a 52-week high and surging by 4.62% namely Birlasoft Ltd. Yesterday after the market closed the company announced its financial results for the second quarter of FY24, half-year results, and an interim dividend.

These announcements were the main factors for today’s jump in the stock price. Interestingly over the past year while the BSE Information Technology index managed to increase by just 4.70% the company’s shares generated a multibagger return of 105.77%.

Talking about the financials of the company, on a consolidated basis, in Q2FY24 the company recorded a financial performance with a 26.04% year-on-year increase in net profit, reaching Rs 145.01 crore compared to Rs 115.05 crore in the corresponding quarter of the previous year. During the second quarter of FY24, the company’s total net revenue showed an increase of 11.44% from Rs 1189.36 crore to Rs 1325.44 crore compared to the same quarter in the preceding year.

Sequentially, the net profit for the quarter ending on September 30, 2023, showed an increase of 5.43% from Rs 137.54 crore. However, in Q2FY24, the company’s total net revenue registered an increase of 3.80% compared to the previous quarter, settling at Rs 1276.83 crore. The company has also declared an interim dividend of Rs 2.50 per equity share on face value of Rs 2 which implies 125% for the financial year 2023-24.

Today, the stock opened at Rs 564.50 and closed at Rs 572.45, up by 4.62%. The shares of the company hit a fresh 52-week high today at Rs 583.10 and it has a 52-week low at Rs 250.35. The company currently commands a market capitalization of approximately Rs 15,775 crore.

Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, and Insurance, Life Sciences and Services, Energy Resources and Utilities, and Manufacturing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.