Coforge Announces Q3 FY22 Results

11 Feb 2022 , 11:11 AM

Coforge Limited, a leading global IT solutions organization, announced its financial results for the quarter ended December 31, 2021 (Q3 FY22). The Company reported strong growth in revenue, an expansion in profitability, and a continued increase in its billable headcount.

The company reported over 50 per cent rise in consolidated net profit at Rs183.7 crore for December quarter 2021-22. The company had posted a net profit of Rs122 crore in the year-ago period.

Coforge said in a regulatory filing that it revised its annual revenue growth outlook to around 37 per cent. Revenue from operations rose to Rs1,658.1 crore in the quarter under review from Rs1,190.6 crore in the year-ago period.

Q3 FY22 — Financial Highlights
– Revenues for the quarter were $221.6 million and Rs16,581 million
o Up 37.8% in USD terms and 39.3% in Rsterms YoY
o Up 4.2% in USD terms and 5.7% in Rupee terms QoQ
– Adjusted EBITDA margin for the quarter expanded to 19.5%
– PAT for the quarter increased 25.2% Q-o-Q in INR terms

Q3 FY22 — Business Highlights
– Total order book executable over the next 12 months at $701 million
– Order intake was $247 million while 13 new clients were added during the quarter
– Headcount increases by 1,344 to 22,130
– Attrition at 16.3% continues to be amongst the lowest in the industry
– Coforge named as a ‘Major Contender’ in the Salesforce Services in Insurance PEAK Matrix® Assessment 2022 of the Everest Group

“The quarter saw the firm register its highest quarterly adjusted EBITDA margin over the last ten years despite existing supply side pressures. The firm also experienced robust broad based sequential growth, continued net headcount addition at a very fast clip, strong growth in our top ten clients, yet another large deal closure and a continued improvement in the offshore-onsite revenue mix. Onboarding senior talent at scale, successful integration of acquired businesses and attrition below industry average continue to differentiate and mark out our performance” said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd.

The firm has revised upwards its annual revenue guidance and expects consolidated revenue to grow around 37% in constant currency terms. It expects adjusted EBITDA to grow around 44% over the previous year.

The Board has recommended an interim dividend of INR 13 per share, and the record date for this payout will be 8th February 2022.