Coforge declares dividend of Rs 19 per share

3 May 2024 , 05:14 PM

For the fourth quarter that concluded on March 31, 2024, Coforge Ltd., an IT solutions firm, announced a 94.86% YoY increase in net profit of ₹229.2 crore on Thursday, May 2. Coforge reported a net profit of ₹114.8 crore for the same corresponding quarter in FY23, according to a regulatory filing from the business.For the fiscal year 2023–2024, the board of the firm has declared  interim dividend of ₹19 per equity share, fully paid-up at face value of ₹10. This will be recorded on May 15, 2024.

Operating revenue for the company rose 8.7% to ₹2,358.5 crore from ₹2,170 crore in the same period of the previous fiscal year. The interim dividend of ₹19 per share has been approved by the board, and May 15, 2024 will be the record date.

The company recorded a profit of ₹808 crore for the entire FY2023–24, a 16.46% increase from ₹693.8 crore the year before. Operating revenue for FY24 was ₹9,179 crore, 14.52% more than FY23's ₹8014.6 crore.

With a 17.3% annual increase, the total order book executable over the following 12 months is $1,019 million. During the quarter, eight new customer logos were added, and the order intake totaled $774 million.

At $1,973 million, the total amount of orders received during the year represented a 56% YoY increase. The workforce of Coforge comprises of 24,726 people. Attrition over the last 12 months (LTM) was 11.5%, up 60 basis points from quarter to quarter and 258 basis points from year to year.

Sudhir Singh, Chief Executive Officer of Coforge told CNBC TV18 that "FY24 was an exemplary year where the firm grew 13.3% in CC (constant currency) organic terms, thus becoming one of the very few firms across the industry that were able to deliver on the annual growth guidance given at the beginning of FY24. The $400 million TCV deal signed in Q4, the 56% YoY increase in order intake and the 102-bps sequential margin improvement in Q4 set us up strongly to deliver robust growth in FY25 with expanded margins."

Additionally, the business disclosed that it has acquired Cigniti Technologies, an IT service management company, for ₹1,415 per share (cash consideration). It will purchase up to roughly 54% of Cigniti Technologies' equity. It is anticipated that the transaction will be finished by Q2FY25.

Additionally, the board of Coforge approved the hiring of Gautam Samanta, the company's current president as Executive Director for a duration of upto 5 years with effect from May 2, 2024, and the reappointment of Sudhir Singh as an executive director for a maximum of five years, effective January 29, 2025.

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