Coforge Q2 profit rises to Rs 212 cr, revenue up 34% as order book grows 40%

Coforge

Information technology company Coforge reported a nearly 17 percent rise in net profit to Rs 212 crore in the July-September quarter, up from Rs 181 crore a year back.

Revenue from operations rose over 34 percent on-year to Rs 3,062 crore in Q2FY25 from Rs 2,276 crore. The company recorded a total order intake of $516 million in Q2, including three large deals, marking the eleventh consecutive quarter where order intake remained steady above $300 million.

The Coforge order book, executable over the next 12 months stood at $1.3 billion, reflecting a 40 percent on-year surge. The company also added 13 clients during the quarter under review.

Headcount at the end of the quarter increased by 5,871 to 32,483 sequentially, while attrition at 11.7 percent dropped 130 basis (bps) points on-year. However, the total figure includes 4,430 employees from its recently acquired entity Cigniti. Coforge’s organic added 1,441 employees in the quarter.

Naturally, employee benefit expenses increased by almost 35 percent YoY to Rs 1,910 crore in the quarter ended September 30, 2024.

The IT company’s EBIT (earnings before interest and tax) margin deteriorated marginally by 14 bps YoY to 11.4 percent.

The company's board has approved a second interim dividend of Rs 19 apiece, with October 11 as the record date.

“A 27 percent sequential dollar growth with the organic business having grown 6.3 percent sequentially, a concurrent and material expansion in EBITDA, the second consecutive quarter of significant net headcount addition, a large deals pipeline that is looking very robust and an even strengthening order executable which now is 40 percent higher YoY gives us confidence that the quarter and quarters to come shall see robust and sustained growth,” CEO Sudhir Singh was quoted as saying in the Coforge statement.

Singh further said that the company has operationally fully integrated the Cigniti team and the synergies have exceeded even its own expectations. Coforge announced the acquisition in May, 2024, shelling out close to Rs 2,000 crore.