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Informist, Wednesday, Oct. 23, 2024

 

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--Coforge Jul-Sept consol net profit INR 2.02 bln vs INR 1.33 bln qtr ago 
--Analysts saw Coforge Jul-Sept consol net profit INR 2.39 bln 
--Coforge Jul-Sept consol net profit INR 2.02 bln vs INR 1.81 bln year ago 
--Coforge Jul-Sept consol revenue INR 30.62 bln vs INR 24.01 bln qtr ago 
--Coforge Jul-Sept consol revenue INR 30.62 bln vs INR 22.76 bln year ago 
--Coforge Apr-Sept consol net profit INR 3.35 bln vs INR 3.46 bln year ago 
--Coforge Apr-Sept consol revenue INR 54.63 bln vs INR 44.97 bln year ago 
--Coforge 12-mo executable order book $1.31 bln on Sept 30, up 40% on year 
--Coforge net headcount up by 5,871 in Jul-Sept, up 22.1% on quarter 
--Coforge Jul-Sept order intake $516 mln vs $314 mln qtr ago 
--Coforge Jul-Sept trailing 12-mo attrition 11.7% vs 11.4% qtr ago 
--Coforge Jul-Sept EBITDA margin 15.8% vs 17% quarter ago 
--Coforge Jul-Sept consol EBITDA INR 4.84 bln vs INR 4.09 bln quarter ago 
--Coforge Jul-Sept utilisation 82.2% vs 81.6% qtr ago 
--Coforge to pay INR 19 per share interim dividend, record date Oct 11 

 

By Steffy Maria Paul

 

MUMBAI – Global digital information technology solutions provider Coforge Ltd. late Tuesday reported its highest sequential growth in five years for net profit and revenue for the September quarter, aided by its acquisition of Cigniti Technologies. The company's consolidated net profit for the latest quarter was INR 2.02 billion, up 51.8% on quarter and slightly below the INR 2.39 billion expected by analysts. The company's consolidated revenue from operations for the quarter was INR 30.62 billion, up 27.6% sequentially, and above the INR 27.41 billion expected by the Street.

 

The company's performance was boosted by revenue from operations amounting to INR 4.99 billion and net profit amounting to INR 362 million from its acquisition of Cigniti Technologies, the company said. The group had acquired 27.73% of the expanded share capital of Cigniti on Jul. 5. On a year-on-year basis, the company's consolidated net profit was up 11.7%, while its consolidated revenue was up 34.5%. For Apr-Sept, the company reported a consolidated net profit of INR 3.35 billion, down 3.1% on year. The company's consolidated revenue for Apr-Sept was INR 54.63 billion, up 21.5% on year. 

 

The total expenditure in Jul-Sept was INR 28.05 billion, up 26.3% from INR 22.22 billion a quarter ago. Finance costs fell to INR 304 million, down 6.5% from INR 325 million a quarter ago. The employee benefits cost for the quarter was up 34.4% sequentially at INR 19.10 billion. Other income for the quarter rose 121.7% to INR 563 million from INR 254 million a quarter ago. The tax outgo for the September quarter was INR 799 million as against INR 654 million a quarter ago.

 

The company's consolidated revenue from its operations in the Americas was INR 16.87 billion, up 40.9% sequentially. Coforge's revenue from operations in the Europe, Middle East, and Africa region was INR 10.35 billion, up 11.4% on quarter. The company's revenue from operations in the Asia Pacific region was INR 2.34 billion, up 27.5% sequentially. Coforge's revenue from operations in India for the quarter was INR 1.07 billion, up 17.3% on quarter.

 

Operations in the Americas contributed 55.1% to its quarterly revenue, with the Europe, Middle East, and Africa region accounting for 33.8% of the revenue, with the rest of the world accounting for 11.1% of its revenue.

 

The company said its 12-month executable order book as on Sept. 30 was $1.31 billion, up 40% on year. It added 13 new clients during the quarter, taking the order intake for the quarter to $516 million. Coforge said the latest quarter was the eleventh consecutive quarter of booking orders over $300 million and it signed three large deals during the quarter. The company said its repeat business was 95.5% during the quarter.

 

Coforge's employee utilisation for the quarter was 82.2% as against 81.6% a quarter ago. The net headcount increased by 5,871 during the quarter, taking the total headcount at Coforge, including Cigniti, to 32,483. The company said its last twelve-month trailing attrition, including Cigniti, was 11.7%, down 130 bps on year. "We have operationally fully integrated the Cigniti team and the synergies have exceeded even our expectations," Chief Executive Officer Sudhir Singh said in a press release.

 

Earnings before interest, tax, depreciation, and amortisation for the quarter was INR 4.84 billion, up 18.5% from INR 4.09 billion a quarter ago. EBITDA margin for the quarter was 15.8%, up 53 bps on year. The earnings before interest and tax margin for the September quarter was 11.8%, down 188 bps sequentially. Analysts had expected the company's EBIT margin at 12.46%.

 

During the quarter, the company's banking and financial services vertical contributed 29.4% to Coforge's revenue. The insurance vertical contributed 19.1% to its revenue, while travel, transportation, and hospitality vertical accounted for 18.1% of its revenue.

 

Coforge's engineering segment accounted 42.4% of its revenue for the quarter. The data and integration segment contributed 23.2% to its revenue, and cloud and infrastructure management segment made up 17.2% of its revenue for the quarter. 

 

The company said it will pay an interim dividend of INR 19 per share. At 1003 IST, shares of Coforge were up 8.5% at INR 7,377 on the National Stock Exchange, while those of Cigniti Technologies were up 1.8% at INR 1,414.  End

 

US$1 = INR 84.06

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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