Birlasoft's New CEO, Angan Guha, Sparks Remarkable Turnaround in Less Than a Year

In less than a year since taking the helm, Birlasoft's new CEO, Angan Guha, has not only stabilized the ship but also generated substantial momentum, earning accolades from IT analysts. When Guha assumed his role, the IT firm, part of the CK Birla Group, had reported a net loss of Rs 16.4 crore in the December quarter of FY23.

Despite facing challenges, including the bankruptcy of a major US customer, Invacare Corporation, which represented 3% of Birlasoft's revenue, the company has turned its fortunes around. Analysts have recognized the positive impact of Angan Guha's leadership. Nomura, in a recent note, commended the "organization-wide transformation" under Guha's leadership, leading to margin stability and robust deal wins. As a result, growth prospects are now more optimistic.

HDFC Securities echoed this sentiment, emphasizing Birlasoft's strong Q2 performance, both in terms of revenue and margins. The company's strategic focus on digital and cloud services has paid off with a significant revenue increase of 11.9% QoQ in these areas.

Furthermore, Birlasoft has appointed Selvakumaran Manappan as its Chief Operating Officer (COO), who will oversee global delivery and operations, service lines, and business excellence, in addition to CTO/CISO functions.

In Q2 of FY24, Birlasoft's net profit grew by 5.5% QoQ to Rs 145 crore, and on a YoY basis, it increased by 26.1%. The company's Q2 revenue reached Rs 1,310 crore, marking a 3.7% rise from the previous quarter.

Although the number of active clients declined from 285 in the June quarter to 278 in the September quarter due to "sustained rationalization of the tail," the company's overall performance remains robust.

Additionally, Birlasoft experienced a marginal increase in employee headcount, reduced attrition, and improved utilization ratios, showcasing the positive direction in which the company is moving under Angan Guha's leadership.