Coforge Ltd announces Q2 FY24 financial performance with notable growth

Coforge Limited, a leading global IT solutions organization, has released its financial results for Q2 FY24, concluding on September 30, 2023. The company experienced robust growth, highlighting a consistent business momentum.

Coforge Revenue and Profit Metrics

The reported revenue for the quarter was INR 22,762 million ($278.1 million), showing a quarter-on-quarter (Q-o-Q) growth of 2.3% in both constant currency and USD terms and an increase of 2.5% in INR terms. Annually, there’s a growth of 14.1% in CC, 12.6% in USD, and 16.2% in INR. The adjusted EBITDA margin stood at 17.6%, which improved by 160 bps Q-o-Q. Furthermore, the consolidated Profit After Tax (PAT) for the quarter saw a rise of 9.5% Q-o-Q, amounting to INR 1,810 million.

Key Business Highlights

• Order and Client Overview: The order intake for the quarter was noted at $313 million, marking the seventh consecutive quarter of deals surpassing $300 million. The total order book executable over the next year is up by 16.6% Y-o-Y, reaching $935 million. Additionally, the company secured eight new clients this quarter.
• Workforce and Attrition: The employee count by the end of the quarter rose to 24,638, with an addition of 414 Q-o-Q and 1,647 YoY. LTM attrition showed a decrease, down 340 bps YoY, and now stands at 13.0%.
• Revenue Contributions: Offshore revenue contributions from IT services alone increased to 52%.

Sudhir Singh, Chief Executive Officer, Coforge Ltd., commented, “At the end of the first half, the firm has grown 16.2% in CC terms despite a challenging market scenario. This underlines the exceptional execution and commitment of all Team Coforge members.”

Looking Ahead

Coforge Ltd has reiterated its fiscal year 2024 annual revenue growth projection, expecting it to be between 13% to 16% in constant currency terms. The company also confirmed a gross margin improvement of 50 bps when compared to FY23. Adjusted EBITDA margin levels are anticipated to be on par with FY23 levels.

Dividend Announcement

The board has proposed an interim dividend of INR 19 per share. The record date set for this distribution is 2nd November 2023.