Earnings Review
Coforge Jan-Mar PAT rises 21% QoQ, but misses Street's view
This story was originally published at 18:43 IST on 5 May 2025
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--Coforge Jan-Mar consol net profit INR 2.61 bln vs INR 2.16 bln qtr ago
--Analysts saw Coforge Jan-Mar consol net profit INR 2.82 bln
--Coforge Jan-Mar consol revenue INR 34.10 bln vs INR 32.58 bln qtr ago
--Coforge to pay INR 19 per share interim dividend
--Coforge FY25 consol net profit INR 8.12 bln vs INR 8.08 bln year ago
--Coforge FY25 consol revenue INR 120.51 bln vs INR 90.09 bln year ago
--Coforge: Signed five large deals in Jan-Mar
--Coforge Jan-Mar consol adjusted EBITDA margin 18.7%, up 101 bps on qtr
--Coforge Jan-Mar consol adjusted EBITDA INR 6.36 bln vs INR 5.75 bln qtr ago
--Coforge Jan-Mar trailing 12-mo attrition 10.9% vs 11.9% qtr ago
--Coforge Jan-Mar total headcount 33,497 vs 33,094 quarter ago
--Coforge 12-mo executable order book $1.51 bln as on Mar 31, up 47.7% on yr
--Coforge Jan-Mar utilisation 82% vs 81.3% qtr ago
By Shakshi Jain
MUMBAI – Information technology services company Coforge Ltd. Monday reported a third consecutive quarter of sequential growth in bottom line as revenue for the March quarter rose faster than expenses. However, the company's bottom line as well as top line failed to meet the Street's expectations.
The digital services and solutions provider's consolidated net profit rose over 21% sequentially to INR 2.61 billion for the quarter under review. Analysts had expected a consolidated net profit of INR 2.82 billion. In the December quarter, the company's consolidated net profit had grown nearly 7% sequentially to INR 2.16 billion.
The company's consolidated revenue during the reporting quarter rose nearly 5% sequentially to INR 34.10 billion, lower than the INR 35.11 billion expected by analysts.
In dollar terms, Coforge's revenue increased 3.3% on quarter to $403.5 million in Jan-Mar, lower than the Street's expectation of $408.5 million. In constant currency terms, the top line grew 3.4% on a sequential basis.
The IT services company's adjusted earnings before interest, taxes, depreciation, and amortisation for the March quarter was INR 6.36 billion, up 10.6% from a quarter ago. The adjusted EBITDA margin improved by 101 basis points on quarter to 18.7% during the quarter.
During the March quarter, the company's headcount rose to 33,497 from 33,094 a quarter ago. The trailing 12-month attrition rate improved to 10.9% during the three-month period, compared with 11.9% a quarter ago. The utilisation rate during the quarter improved marginally to 82% from 81.3% a quarter ago.
Coforge's executable order book for the next 12 months increased to $1.5 billion at the end of March, up almost 48% on year. Fresh order intake during the March quarter was $2.13 billion. Coforge said it signed five large deals during the reporting quarter across North America, the UK, and the Asia-Pacific. The company took on 10 new clients during the quarter, down from 14 in the preceding quarter.
For the financial year 2024-25 (Apr-Mar), Coforge posted a consolidated net profit of INR 8.12 billion, up from INR 8.08 billion in FY24. Its revenue grew nearly 34% to INR 120.51 billion. Coforge announced an interim dividend of INR 19 per share.
On Monday, shares of the company closed at INR 7,496.50 on the National Stock Exchange, up 1.6% from the previous close. The company detailed its earnings for the March quarter after market hours. End
US$1 = INR 84.25
Edited by Rajeev Pai
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