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Revenue in constant currency terms grew by 8.4% on a sequential basis for Coforge, while a CNBC-TV18 poll had projected that figure to be at 4.6%.
In US Dollar terms, Coforge’s topline grew by 7.5% on a quarter-on-quarter basis to $397 million, while in rupee terms, revenue growth stood at 8.4% from the previous quarter to ₹3,318.2 crore.
Earnings Before Interest and Tax stood at ₹316.2 crore from ₹287.6 crore last quarter, while EBIT margin, as per the company’s P&L account, stood at 9.5% from 9.4% in the previous quarter.
However, as per the CNBC-TV18 calculation, the margins stood at 11.8%, which was the same as the previous quarter but lower than the estimated figure of 12.2%.
Net profit for the period increased by 6.6% to ₹215.5 crore.
This was also the second straight quarter for Coforge, where order intake was in excess of $500 million.
“A 8.4% sequential cc growth, a 40.3% cc YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a Cigniti business that has already touched an EBITDA margin of 17.3%, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth.” said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd.
Additionally, Coforge has also signed an agreement to acquire 100% stake in Xceltrait Inc. for $17.85 million.
Xceltrait is a US based company, specialising in the implementation of ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules and brings expertise in the P&C insurance industry.
Coforge’s newly acquired Cigniti business reported revenue growth of 3.5% in constant currency terms, while its EBITDA margin improved to 17.3% from 11% in the base quarter of financial year 2024 and 16.2% in the previous quarter.
Rate of attrition for Coforge stood at 11.9% at the end of the December quarter.
The board has also recommended an interim dividend of ₹19 per share, record date for which has been fixed as January 30, 2025.
Shares of Coforge had ended 0.5% lower on Wednesday at ₹8,223. The stock is down 12.5% over the last one month.
