Coforge’s revenue increased 2.4 percent sequentially for the April-June quarter to $271.8 mn. Coforge saw its revenue grow 2.7 percent in constant currency terms, lower than the expected 3.5 percent sequential growth.
While Coforge's numbers came below estimates, it maintained its double-digit growth guidance of 13-16 percent for the full year, on a day when large-cap Infosys slashed its growth for the year to a paltry 1-3.5%, shocking the street.
In rupee terms, the company reported a revenue of Rs 2,221 crore in the June quarter against 2,170 crore in the previous quarter, Coforge said in a stock exchange filing on July 20. The mid-cap IT services player, however, reported a 43.9 percent jump in its net profit to Rs 165.3 crore, as the company had to provide for an exceptional expense of Rs 52.3 crore in the March quarter.
The company also saw a miss on its operating margins, as it was down 400bps primarily on account of pickup in hiring, salary hikes, bonus payouts and visa costs.
Coforge said that the Board of Directors at its meeting held on July 20, 2023 has declared an interim dividend of Rs 19 per equity share and the record date for this payout will be August 3, 2023.
The company, which crossed $1 billion in revenue last quarter, plans to reach the $2 billion revenue mark by FY28.
The IT company reported a TCV of $531 million, up from over $300 million for the last five consecutive quarters, as it has indicated that deal momentum is expected to remain robust. The TCV is its highest-ever so far.
“...The five-year $ 300Mn TCV deal in the BFS space along with another five year $ 65 Mn TCV deal in the same sector underlined the execution rigor of the team… The quarter’s performance sets us up very well for meeting our annual revenue guidance of 13% to 16% cc growth,” said Sudhir Singh, Chief Executive Officer, Coforge.
Coforge has also added 1000 employees on a net basis to its headcount to support anticipated volumes.
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