Coforge Reports 56.5% YoY Revenue Growth in Q1, Declares Interim Dividend
By ScanX News Team
Coforge Limited announced strong Q1 financial results with 56.5% YoY revenue growth in INR terms, reaching ₹36,886.00 million. US Dollar revenue increased by 54.5% to $442.40 million. EBITDA margin improved to 17.5%, and PAT rose 138.4% YoY to ₹3,174.00 million. The company secured $507.00 million in new orders, with five large deals signed. The order book for the next 12 months stands at $1.55 billion, up 46.9% YoY. Coforge declared an interim dividend of ₹4.00 per share and announced the appointment of a new Registrar and Share Transfer Agent. The company also plans to acquire Artexmind S.A. to expand its geographical presence.
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Coforge Limited , a global digital services and solutions provider, has announced robust financial results for the first quarter, demonstrating strong growth across key metrics. The company also declared an interim dividend and revealed strategic moves to enhance shareholder services and expand its global footprint.
Strong Financial Performance
Coforge reported a substantial year-on-year revenue growth of 56.5% in Indian Rupee terms for Q1, with revenues reaching ₹36,886.00 million. In US Dollar terms, the revenue stood at $442.40 million, marking a 54.5% increase compared to the same quarter last year.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin improved to 17.5%, up by 61 basis points quarter-on-quarter. Profit After Tax (PAT) saw a significant jump, rising by 138.4% year-on-year to ₹3,174.00 million.
Key Business Highlights
- Order intake for the quarter was robust at $507.00 million, with five large deals signed.
- The order book executable over the next 12 months stood at $1.55 billion, showing a 46.9% year-on-year growth.
- Coforge added six new logos during the quarter, expanding its client base.
- The company's global headcount reached 34,187 as of June 30, with a net addition of 1,164 employees during the quarter.
- IT attrition rate (LTM) remained low at 11.3%, which the company claims is among the lowest in the IT services industry.
Interim Dividend Declared
The Board of Directors has declared an interim dividend of ₹4.00 per equity share (face value ₹2.00 each). The record date for determining shareholder eligibility has been set as July 31, with payment to be made within 30 days of the declaration.
Strategic Moves
Change in Registrar and Share Transfer Agent
In a move to enhance operational efficiency and provide a seamless experience to shareholders, Coforge has appointed MUFG Intime India Private Limited as its new Registrar and Share Transfer Agent, effective November 15. This change comes in response to the company's growing shareholder base and the increasing complexity of managing investor-related services.
Acquisition for Geographical Expansion
Coforge has agreed to acquire Artexmind S.A., a shelf company, for approximately $10,000.00 through its subsidiary Coforge Solutions Private Limited. This strategic acquisition is aimed at establishing operations in a new geography, leveraging the existing entity to expedite the process compared to setting up a new one.
Sector-wise Performance
The company's revenue mix for Q1 shows a diverse portfolio:
| Sector | Revenue Share |
|---|---|
| Banking and Financial Services (BFS) | 27.7% |
| Travel, Transportation and Hospitality | 22.9% |
| Insurance | 15.5% |
| Government (Overseas) | 7.2% |
| Others | 26.7% |
The 'Others' category, which includes Healthcare, Retail, Hi-Tech, and Manufacturing, showed significant growth, contributing 26.7% to the overall revenue.
Coforge's strong performance in Q1, coupled with strategic initiatives and a healthy order book, positions the company for continued growth in the coming quarters. The management's focus on expanding its global presence and enhancing shareholder services underscores its commitment to long-term value creation.
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