Birlasoft Shares Hit Record High After Q3 Profit Beats Estimates

Shares of Birlasoft Ltd. surged to a life-time high on Thursday after its third-quarter net profit rose, beating analysts' estimates.

The company's net profit rose 11.03% quarter-on-quarter to Rs 161 crore, beating the Bloomberg estimate of Rs 142.4 crore.

• Revenue up 2.52% at Rs 1,342.9 crore. (Bloomberg estimate: Rs 1,333.3 crore).

• Ebitda up 4.15% at Rs 193.2 crore. (Bloomberg estimate: Rs 180.1 crore).

• Margin expands 22 bps to 14.38%. (Bloomberg estimate: 13.50%).

• Net profit up 11.03% at Rs 161 crore. (Bloomberg estimate: Rs 142.4 crore).

"We have delivered a strong and well-rounded operating performance, with a 1.9% sequential growth in revenue to $161.3 million in a seasonally soft quarter and an expansion in Ebitda margin, even after absorbing the full impact of compensation hikes," said Angan Guha, chief executive officer and managing director of Birlasoft.

Shares of the company rose 2.29% before paring gains to trade 0.85% higher at 10:26 a.m., compared to a 0.67% decline in the NSE Nifty 50.

The stock has risen 180.30% in the last 12 months. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 77, indicating it was overbought.

Of the 14 analysts tracking the company, nine maintain a 'buy' rating, four recommend a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 185.6%.