On January 22, 2024, Coforge Limited (BSE, NSE: COFORGE) announced its Q3 2023-24 results, driving robust organic growth with Q3 FY24 YTD CC Organic Revenue rising 14.7%.
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Result Takeaways
The prominent IT solutions global player reported healthy operating and financial performance marked by a rise in growth, continued business momentum, and margin expansion in a seasonally discouraging quarter. Figures are reported in ₹ million and USD$ as presented in the Company’s press release:
Financial Highlights for Q3 FY24
- For Q3 FY24, the Company’s Revenue was ₹23,233 million and $282 million (in terms of USD).
- In Q3 FY24, Revenue went up by 1.8% QoQ, in constant currency, 1.4% in USD, and 2.1% in terms of INR.
- The Q3 FY24 Revenue rose by 12.0% in YoY in CC, 12.0% in USD, and 13.0% in INR.
- In Q3 FY24, the Company reported an EBITDA margin of 17.3%, a rise of 201 bps QoQ.
- The Adjusted EBITDA margin stood at 18%, rising by 39 bps QoQ.
- The Company’s consolidated Profit After Tax (PAT) for Q3 FY24 stood at ₹2,380 million, a rise of 31.5% QoQ.
Additional Read: Q3 Results Dashboard
Business Highlights for Q3 FY24
- In Q3 FY24, the Company’s order intake was at $354 million, marking 8 successive quarters of $300 plus million deal wins.
- The Total executable Order Book over the next 12 months stood at $974 million, up by 15.8% YoY.
- During Q3 FY24, 7 new clients were added to the Company’s client base.
- LTM attrition stood at 12.1%.
- The Board has suggested an interim dividend of ₹19 per share. The record date for the payout will be 5 February 2024.
- The Banking and Financial Services Industry contributed majorly to the Revenue collection in Q3.
- By geography, the EMEA has contributed 40% of the Total Revenue to the Company’s strong financials.
- In terms of service offerings, the Company has provided the majority of services through its Data and Integration solutions.
The Management’s Take on Q3 Results
The CEO of Coforge Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company is likely to be one of the few that displayed comprehensive guidance for growth at the start of the year and delivered within the estimated revenue range.
- The fiscal year has been one marked by challenges. Still, the Company’s ability to deliver with YTD Revenue (in CC) at the end of Q3 at a growth of 14.7 is evidence of the Company’s strength and the ability to adapt to headwinds in the present economic environment.
Q3 Outcomes – Awards, Alliances & Other Highlights
The Company’s Q3 results had other important quarterly aspects on the Company’s growth and success in the quarter:
- The Company was awarded in the category of Contender Core Banking Technology and Integration Services for the U.S. Provider Lens study ‘Digital Banking Services 2023’ by ISG.
- The Company won the 2023 Duck Creek Technologies International Value Creation Partner of the Year award.
- In terms of launches and strategic collaborations, the Company launched Quasar Responsible AI, this being a comprehensive solution for ensuring that AI is fair, ethical, transparent, and functional as per regulatory compliance. The Company has also launched Coforge Quasar, enabling enterprises to develop and establish their own Generative AI-powered applications at scale. Additionally, Coforge has continued its alliances with key players like Newgen and forged more partnerships with companies like OneShield, among other collaborations in sectors like healthcare.
- In other Q3 achievements, the Company transformed a waste dumping site into a biodiversity park in Noida.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Mn as reported by the Company, except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q2 FY 2023-24 | QoQ % | Q3 FY 2022-23 | YoY % |
| Gross Revenues | 23,233 | 22,762 | 2.1% | 20,558 | 13.0% |
| GM % | 33.1% | 32.5% | 59 Bps | 33.4% | -32 Bps |
| EBITDA | 4,012 | 3,474 | 15.5% | 3,615 | 11.0% |
| EBITDA % | 17.3% | 15.3% | 201 Bps | 17.6% | -32 Bps |
| Profit Before Tax | 2,944 | 2,407 | 22.3% | 3,074 | -4.2% |
| Profit After Tax (PAT) | 2,380 | 1,810 | 31.5% | 2,282 | 4.3% |
| EPS in ₹ | 38.6 | 29.6 | 30.6% | 37.4 | 3.2% |
Additional Read: Coforge Limited Share Price
Q3 FY24 Result Summary
With a global edge, Coforge Limited is a digital service provider of solutions that leverage deep domain expertise and evolving technology to deliver a real-world business result for customers. Coforge leads with its approach focused on product engineering approach and makes the most of Data, Cloud, Automation, and Integration technologies to transform customers’ businesses into clever, high-growth enterprises. The company has a presence in 21 countries all over the globe, with 26
Centres of delivery spread over 9 countries.
The Company has a global headcount of 24,607 people and has posted positive results for its third quarter of FY24. With Revenue up by 13% YoY and EBITDA up by 9.8% YoY in INR terms, the Company boasts a well-diversified business portfolio with rising offshoring revenues. Additionally, the Company has displayed significant business momentum leading its strong growth due to fresh order intake and a high level of visibility due to repeat business and contracted revenues. Ultimately, in Q3 FY24, the Company exhibited a de-risked operating profile with decreasing client focus while having an increasing amount of large account relationships.
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Source: https://www.coforge.com/hubfs/Q3FY24%20Web%20presentation.pdf
