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Informist, Friday, Jan. 23, 2026

 

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--Coforge Oct-Dec consol net profit INR 2.50 bln
--Analysts saw Coforge Oct-Dec consol net profit at INR 3.61 bln
--Coforge Oct-Dec consol revenue INR 41.88 bln
--Analysts saw Coforge Oct-Dec consol revenue at INR 42.17 bln
--Coforge Oct-Dec net profit includes one-time cost INR 1.48 bln
--Coforge Oct-Dec consol net profit INR 2.50 bln vs INR 3.76 bln qtr ago
--Coforge Oct-Dec consol revenue INR 41.88 bln vs INR 39.86 bln qtr ago
--Coforge Oct-Dec profit excluding exceptional cost INR 3.98 bln
--Coforge interim dividend record date is Jan 31
--Coforge to pay INR 4 per share interim dividend
--Coforge Apr-Dec consol net profit INR 9.43 bln vs INR 5.51 bln year ago
--Coforge Apr-Dec consol revenue INR 118.62 bln vs INR 86.41 bln year ago
--Coforge Q3 consol Americas revenue INR 23.77 bln vs INR 23.08 bln qtr ago
--Coforge Oct-Dec consol Europe, West Asia, Africa revenue INR 11.74 bln
--Coforge Q3 consol Asia Pacific revenue INR 3.65 bln vs INR 3.42 bln qtr ago
--Coforge Q3 consol India revenue INR 2.72 bln vs INR 1.81 bln qtr ago
--Coforge incurred one-time cost INR 1.18 bln in Q3 due to new labour codes
--Coforge Q3 consol revenue up 4.4% on qtr in constant currency
--Coforge Oct-Dec order intake $593 mln
--Coforge Oct-Dec consol EBITDA INR 7.30 bln vs INR 7.28 bln qtr ago
--Coforge Oct-Dec consol EBITDA margin 17.4% vs 18.3% qtr ago
--Coforge Oct-Dec consol EBIT INR 5.59 bln vs INR 5.56 bln qtr ago
--Coforge Oct-Dec consol EBIT margin 13.4% vs 14.0% qtr ago
--Coforge net added 445 employees in Oct-Dec; total headcount at 35,341
--Coforge 12-mo executable order book $1.72 bln on Dec 31, up 30.4% on yr
--Coforge Oct-Dec trailing 12-month attrition 10.9% vs 11.4% qtr ago
--Coforge Oct-Dec utilisation 81.7% vs 82.3% qtr ago
 

 

By Anshul Choudhary

 

MUMBAI – Coforge Ltd.'s consolidated net profit for the December quarter missed analysts' expectations largely due to one-time costs arising out of changes in labour codes. One-time expenses towards its acquisition of Encora group companies and other legal fee also led to the fall in bottom line, while a lower tax outgo helped limit the fall.

 

The company reported a consolidated net profit of INR 2.50 billion for the quarter, down more than 33% on quarter. Analysts had expected the net profit at INR 3.61 billion. The company's net profit was hit by one-time expenses of INR 1.48 billion, which included a provision of INR 1.18 billion on account of changes in labour codes leading to an increase in gratuity and leave liabilities for the company.

 

If not for these one-time costs, the company would have surpassed expectations. Excluding the one-time costs, the company's adjusted profit rose to nearly INR 4 billion – 6% higher than the net profit in the trailing quarter and higher than analysts' expectations of INR 3.61 billion.

 

The company's consolidated revenue during the quarter rose just over 5% on quarter to INR 41.88 billion. This was slightly lower than analysts' expectation of INR 42.17 billion. Its revenue in constant currency terms was up 4.4% on quarter.

 

The company's revenue in dollar terms was a tad higher than expectations. It reported a consolidated revenue of $478.20 million, while analysts had estimated revenue at $476.86 million.

 

The 5% rise in revenue, or more than INR 2 billion of added sales, was due to a slight increase in revenue from its largest market of Americas--which added nearly INR 700 million in sales during the quarter. More than half of the company's sales comes from Americas. India, which constitutes only 6% of overall sales, ended up getting nearly INR 900 million more in sales during the quarter. The company's other markets including Europe, West Asia, Africa, and Asia Pacific reported minor growth in sales.

 

In terms of verticals, revenue from its largest business of banking and financial services was down 2.4% sequentially. Revenue from its second-largest vertical of travel and hospitality rose 1.6% on quarter. The 'others' vertical – which largely comprises retail, manufacturing, media, and utilities – reported a more than 18% rise in revenue. Revenue from the healthcare vertical was up 8.5%.

 

The company benefitted from a only small rise in expenses and a sharp fall in tax outgo, which helped limit the decline in bottom line. Its employee benefit expenses rose only 2.6% on quarter to INR 23.31 billion. Other expenses rose nearly 15% to INR 11.25 billion, leading to a near 6% quarter-on-quarter rise in consolidated expenses at INR 36.70 billion. Its tax outgo during the quarter was down 34% on quarter at INR 875 million.

 

ORDER WINS

The company surpassed expectations on orders, winning orders worth $593 million during the quarter, while analysts had expected this at around $500 million. The fresh orders during the quarter were more than 15% higher than the orders it secured in the trailing quarter.

 

The company's executable order book for the next 12 months stood at $1.72 billion, up 5% on quarter and more than 30% from the year-ago quarter. The company secured six large deals during the quarter. It had already got 10 large deals in the first half of the financial year, and plans to end the year with 20 large deals.

 

OPERATING PERFORMANCE

The company's key margins fell during the quarter but were still better than expectations, indicating the impact of wage hikes was not as severe as some brokerages had feared. Its earnings before interest and tax was marginally higher on quarter at INR 5.59 billion. The EBIT margin was down 60 basis points on quarter at 13.4%, while most analysts had predicted the EBIT margin falling to 12.9-13.3%.

 

The company net added 445 employees in the December quarter, taking its overall employee count to 35,341. Its utilisation of employees, including trainees, was slightly down at 81.7% compared with 82.3% in the trailing quarter. The attrition rate came down to 10.9% in the December quarter from 11.4% in the September quarter. The company said its attrition rate was among the lowest in the industry.

 

For the nine months ended December, the company reported a 37% rise in consolidated revenue at INR 118.62 billion. Its net profit for the same period rose 71% on year to INR 9.43 billion. On Thursday, shares of the company closed at INR 1,687.70 per share on the National Stock Exchange, up just over 1%.

 

The company approved its third interim dividend of INR 4 per share along with the December quarter earnings. It has fixed Jan. 31 as the record date to ascertain eligible shareholders.  End

 

US$1 = INR 91.63

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

 

Edited by Avishek Dutta

 

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