Coforge Limited, a leading global IT solutions organization has announced its financial results for the second quarter ended September 30, 2023. Coforge will pay an Interim dividend.
Financial Highlights for Q2 FY24
- The company generated total revenue of INR 22,762 million and $278.1 million during the second quarter of the fiscal year 2024 (Q2 FY24).
- Q-o-Q Growth: The revenue increased by 2.3% in constant currency, 2.3% in USD, and 2.5% in INR terms compared to the previous quarter.
- Y-o-Y Growth: The year-over-year growth was impressive, with revenue increasing by 14.1% in constant currency (CC), 12.6% in USD, and 16.2% in INR terms. This indicates strong sales performance over the past year.
- Adjusted EBITDA Margin: The Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin was reported at 17.6%.
- Consolidated Profit After Tax (PAT) for Q2: The EBITDA margin improved by 160 basis points (bps) quarter-over-quarter (Q-o-Q). This suggests better cost management and operational efficiency during the quarter.Q-o-Q, indicating improved profitability during the quarter.
Business Highlights for Q2 FY24
- Order Intake: The company secured orders worth $313 million during Q2, marking the seventh consecutive quarter with deal wins exceeding $300 million.
- Total Order Book Executable: The total order book, which represents future revenue, executable over the next 12 months, stood at $935 million, showing a healthy 16.6% year-over-year growth.
- New Clients Added: 8
- Total Headcount at Quarter End: The company’s workforce at the end of the quarter increased to 24,638 employees. This includes an addition of 414 employees quarter-over-quarter (QoQ) and 1,647 employees year-over-year (YoY).
- LTM Attrition: The Last Twelve Months (LTM) attrition rate was 13.0%, marking a significant reduction of 340 basis points (bps) YoY. This indicates a more stable workforce environment.
- Offshore Revenue Contribution (IT Revenue Only): 52%
Coforge remains committed to its fiscal year 2024 annual revenue growth guidance of 13% to 16% in constant currency terms. The company also reaffirmed its gross margin improvement target of 50 bps compared to FY23, with adjusted EBITDA margin expected to be at similar levels as FY23.
Coforge Interim Dividend
The Board has recommended an interim dividend of INR 19 per share, with the record date for this payout set for November 2, 2023.
Awards, Recognitions, and Partnerships:
- Coforge launched “Coforge Quasar,” enabling enterprises to develop AI-powered applications at scale.
- HFS Research recognized Coforge as a Market Leader in Travel, Hospitality, and Logistics.
- Coforge and Newgen elevated their partnership to deliver transformative Insurance Lifecycle Management Solutions.
- Coforge introduced the “Authorization Rules Center (ARC)” solution for the healthcare industry.
- Coforge was honored with the 2023 Duck Creek Technologies International Value Creation Partner of the Year award.
- Coforge won awards in three categories at the 6th CHRO Vision & Innovation Awards 2023. Learning & Development, Employee Engagement, and Corporate Social Responsibility.
- Coforge transformed a waste dumping ground into a biodiversity park in Noida.
Coforge is a global digital services and solutions provider, that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. Coforge leads with its product engineering approach and leverages Cloud, Data, Integration and Automation technologies to transform client businesses into intelligent, high growth enterprises. Coforge’s proprietary platforms power critical business processes across its core verticals. The firm has a presence in 21 countries with 26 delivery centers across nine countries.