Coforge hits new highs in revenue and profitability for Q1 FY25: Strong outlook ahead

Coforge Limited, listed on the National Stock Exchange of India (NSE) under the ticker COFORGE, reported a substantial increase in its financial performance for the first quarter of FY25. The company’s revenue for the quarter reached INR 24,008 million (approximately US$ 291.4 million), reflecting an 8.1% year-over-year increase in Indian Rupee terms and a 7.2% rise in USD terms. On a quarter-over-quarter basis, revenue saw a 1.6% improvement in both constant currency and USD terms.

The company’s EBITDA margin for Q1 stood at 17%, marking a notable increase of 210 basis points compared to the same quarter last year. Normalized Profit After Tax (PAT) was INR 2,285 million, up 28.2% year-over-year. Coforge also reported a robust cash flow from operations of US$ 23.2 million. The Board has announced an interim dividend of INR 19 per share, with a record date set for August 2, 2024.

The quarter saw Coforge’s executable order book expand to US$ 1.07 billion, an impressive 19.3% increase year-over-year. This growth is supported by a strong order intake of US$ 314 million, marking the tenth consecutive quarter of exceeding US$ 300 million in new orders. Additionally, Coforge added 10 new clients during the quarter.

Coforge’s headcount grew by 1,886 employees sequentially, bringing the total to 26,612. This 7.6% increase in headcount underscores the company’s ongoing expansion and commitment to meeting increasing client demands. The company also reported a decrease in attrition rates within its IT segment, with the last twelve months’ attrition rate at 11.4%, down 192 basis points year-over-year.

In a strategic move to enhance its market position, Coforge acquired a 28% stake in Cigniti Limited and revamped its board, reflecting its ongoing commitment to growth and strategic investments.

Sudhir Singh, Chief Executive Officer of Coforge Limited, commented on the company’s performance: “FY25 has started on a strong note with a healthy increase in EBITDA margins by 210 basis points over last year and cash flow from operations of US$ 23.2 million. A very strong executable order book, backed by the highest ever headcount addition, sets us up for continued growth ahead.”

Coforge’s impressive Q1 results highlight its robust growth trajectory and strategic initiatives to strengthen its market position. The company’s focus on expanding its client base and increasing operational efficiency, combined with a strong order book and strategic acquisitions, positions Coforge well for sustained growth in the competitive IT solutions sector.