Coforge share price fell 8.5 percent intraday on October 25 despite company clocking better numbers in the quarter ended September 2021.
Coforge has posted an 18.7 percent jump in its Q2 net profit at Rs 146.7 crore as against Rs 123.6 crore in the June quarter and its revenue was up 7.4 percent at Rs 1,569.4 crore from Rs 1,461.6 crore, QoQ.
The company's dollar revenue was up 6.5 percent to $212.8 million as against $199.7 million, QoQ. Earnings before interest, tax (EBIT) was up 35.2 percent at Rs 214.9 crore and margin was at 13.7 percent, QoQ.
The board has recommended an interim dividend of Rs 13 per share, and the record date for this payout will be November 8, 2021.
In view of sustained deal wins and incremental business from its customer base, the company now looks at a growth of of at least 22 percent, excluding SLK Global contribution, in constant currency terms in FY22, which is higher than the at least 19 percent growth indicated earlier, Coforge said in a statement.
This translates to at least 35 percent consolidated growth, including SLK Global, in constant currency terms for the company in FY22. It continues to target an adjusted EBITDA margin of 19 percent for the year, it said.
"Our investments in product engineering, cloud, data, automation and integration capabilities continue to power our path to being a $1-billion-plus company next year. This is a landmark year for us as we anticipate that we shall grow revenues by at least 35 percent and our adjusted EBITDA by at least 40 percent over the previous year," said Sudhir Singh, Chief Executive Officer, Coforge.
"Our ability to significantly improve margins in a supply constrained and escalating costs context while simultaneously driving exceptional growth is a testament to the execution capabilities of Team Coforge," he said.
Coforge was quoting at Rs 5,062.65, down Rs 357.05, or 6.59 percent in the early ours of trade on the BSE. The share touched a 52-week high of Rs 6,029.40 and a 52-week low of Rs 2,077.60 on October 20, 2021, and November 3, 2020, respectively.
It is now trading 16.03 percent below its 52-week high and 143.68 percent above its 52-week low.