BLS International Surges Over 7% Today On Strong Q2 Results and Healthy Outlook

Sujeet Kushwaha

BLS International Services Ltd. (BLS International) saw its share price surge over 7% to Rs 330.75 on Thursday after the company reported strong results for the September 2023 quarter.

BLS International Posts 78.75 Cr Net Profit in Q3FY23

BLS International Services, a leading Business Process Outsourcing (BPO) company, posted a net profit of Rs 78.75 crore for the quarter ended September 30, 2023.

This marked a significant 70% year-on-year growth compared to Rs 50.37 crore profit recorded in the same quarter last year.

The company’s total revenue jumped to Rs 416.19 crore in Q3FY23, rising nearly 70% from Rs 360.35 crore in Q3FY22. This strong growth in topline and bottomline underscores BLS International’s solid execution and operating leverage.

BLS International Stock Surges Over 7% On Q2 Beat

Following the stellar Q3 results, BLS International shares were trading 7.28% higher at Rs 322.50 on the BSE at 12:30 PM on Thursday.

The stock hit an intraday high of Rs 334.30 before trimming some gains. The stock has zoomed 87% year-to-date, significantly outperforming broader indices.

BLS International stock has given multi-bagger returns of 270% over the past five years, rewarding long-term investors handsomely. However, the stock has corrected marginally by 0.03% over the past 5 trading sessions.

BLS International Key Q2 Highlights

  • Total revenue grew 78% YoY to Rs 416.19 crore compared to Rs 360.35 crore last year
  • EBITDA jumped 72% to Rs 88.17 crore versus Rs 56.87 crore in Q3FY22
  • EBITDA margin stood at 21.17% versus 15.62% in Q3FY22
  • Net profit rose 70% YoY to Rs 78.75 crore compared to Rs 50.37 crore last year
  • EPS stand in Rs 1.91 in Q3FY23 versus Rs 2.46 in Q3FY22

BLS International Has 71.5% Promoter Holding

As per the shareholding pattern on September 30, 2023, BLS International has 71.52% promoter holding. This high promoter shareholding indicates the majority owners have skin in the game and are invested in the company’s future.

The public shareholding in the company stands at 28.22%. Among public shareholders, FII/FPIs held 7.66% stake or 3.1 crore shares in the company as of September 30, 2023. Domestic institutional investors held 5.43% stake in BLS International.

BLS International Valuation Seems Reasonable

BLS International stock is trading at a P/E ratio of 50.81 based on FY23 EPS of Rs 6.50. While not cheap at current levels, the valuation seems justified given the company’s strong growth outlook.

With digitization and rising outsourcing by global clients, BLS International enjoys a long runway for growth. The company serves clients across domains like visa processing, banking operations, e-governance, and biometrics services.

BLS International Key Financial Metrics

  • Market Cap: Rs 12,735.15 Crore
  • Dividend Yield: 0.24%
  • Price to Book Ratio: 15.79
  • Debt to Equity: 0.02

BLS International Q2 Results Reaffirm Growth Momentum

BLS International’s September quarter results reaffirm that the company’s growth momentum remains strong despite macroeconomic challenges.

The company’s leadership position in key business verticals, long-standing client relationships and focus on enhancing digital capabilities position it attractively to benefit from industry tailwinds.

While concerns on elevated valuations remain, BLS International stock may continue to ride the bull wave given its earnings growth visibility and positive sentiment post the strong Q3 show. Investors with high risk appetite can consider buying the stock on dips for big gains over the long run.

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Leveraging his government experience, Sujeet brings valuable insight on the stock market to readers. His passion for analysis drives coverage of equities and the latest financial news. When he's not busy dissecting stocks, Sujeet enjoys learning about new businesses and industries.
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