On October 19, 2023: Coforge Limited (BSE, NSE: COFORGE) announced its Q2 2023-24 financial results, maintaining its annual growth guidance in FY2024. Significantly, in what appears to have been a challenging quarter, Coforge Limited displays robust results with Q2 revenue on the uptick on a YoY basis.
Table of Content
Key Financial Highlights
Catch the key highlights of the Q2 results below:
- For Q2, Revenue is up to ₹2,276 crore and $278.1 million.
- Revenue was up QoQ by 2.3% in constant currency, 2.5% in terms of INR, and 2.3% in terms of USD.
- On a YoY basis, Revenue was up by 14.1% in CC, 16.2% in terms of INR, and 12.6% in terms of USD.
- At 17.6%, the adjusted EBITDA margin displays an improvement of 160 bps on a QoQ basis.
- In Q2, the consolidated PAT (Profit After Tax) was at ₹181 crore, a rise of 9.5% QoQ.
Additional Read: Q2 Results Dashboard
Notable Business Highlights
Here are some of the business highlights of Coforge Limited for the second quarter of 2023-24:
- In Q2, the intake of orders stood at $313 million. It is important to stress that this is the seventh consecutive quarter of the company’s $300 million and above deal wins.
- The total order book that is executable in the next 12 months is at $935 million, up by 16.6% YoY.
- The company has added 8 new clients to its base in Q2.
- The offshore revenue contribution has gone up to 52% (only IT revenue).
More Talent, Headcount Increases
At the end of Q2, the headcount of the company rose to 24,638, with an addition of 414 on a QoQ basis and 1,647 on a YoY basis. It is important to note that LTM attrition is down 340 bps YoY, at 13.0%.
Comments by the Management
While commenting on the Q2 results, the CEO, Sudhir Singh, indicated the following:
- The company has witnessed a growth of 16.2% in terms of CC at the close of the first half of FY 2023-23.
- The results of the quarter are commendable, considering the challenging business environment.
- The CEO owed the company’s quarterly success to the commitment of its employees and their exceptional execution of operations.
- The company reiterates its FY 2023-24 annual revenue growth guidance of 13% to 16% in terms of CC (constant currency) and an improved reaffirmed gross margin of 50 bps relative to FY 2022-23. The adjusted EBITDA margin is within similar levels as that in FY 2022-23.
- The company’s Board has suggested an interim dividend of ₹19 per share, with a record payout date of 2 November 2023.
Also Read: Coforge Ltd Share Price
Achievements All Round
It is vital to highlight that Coforge has experienced certain achievements in the last quarter:
- The company has introduced Coforge Quasar, enabling enterprises to develop and construct their own AI-powered applications with scalability in mind.
- The company has earned the recognition of being a Market Leader in the segments of Hospitality, Travel, and Logistics as denoted by HFS Research.
- Coforge has extended its collaboration with Newgen to facilitate the delivery of transformative Insurance Lifecycle Management Solutions.
- For the healthcare industry, the company has launched the ARC (Authorisation Rules Centre) solution.
- In the last quarter, Coforge has won awards like the 2023 Duck Creek Technologies International Value Creation Partner of the Year award and has been awarded in 3 categories at the 6th CHRO Vision & Innovation Awards of 2023.
- In Noida, the company has successfully transformed a dumping ground for waste into a biodiversity park.
Coforge Financial Working Results
The table below shows the key financial metrics of the Q2 results (in INR Million, except for percentages and INR where indicated):
| Metrics | Q2 FY 2023-24 | Q1 FY 2022-23 | QoQ % | Q2 FY 2022-23 | YoY % |
| Gross Profit | 7,388 | 6,808 | 8.5% | 6,277 | 17.7% |
| GM% | 32.5% | 30.7% | 180 Bps | 32.0% | 42 Bps |
| EBITDA | 3,474 | 3,316 | 4.8% | 3,444 | 0.9% |
| EBITDA% | 15.3% | 14.9% | 33 Bps | 17.6% | -232 Bps |
| PAT | 1,810 | 1,653 | 9.5% | 2,011 | -10.0% |
| Basic EPS INR | 29.6 | 27.0 | 9.4% | 33.0 | -10.4% |
About Coforge
A prominent player in the IT and consulting sector, Coforge is an international provider of digital services and solutions. The company’s key operations include leveraging emerging technologies and expertise in deep domains to deliver real-world solutions and positive business for its customers. A focus on exclusive industries, an extremely detailed grasp of the basic processes of those industries, and collaborations with top platforms give Coforge a unique perspective. Coforge has an edge in the industry with its approach geared towards product engineering and leverages Data, Cloud, Automation, and Integration technologies to transform the businesses of clients into highly evolved and intelligent growth enterprises. The company has a robust presence in 21 countries and delivery centres spread across 9 countries.
Source:
https://www.coforge.com/investors
