Coforge stock gains on posting 10.4% y-o-y growth in net profit

21 Jul 2023 , 10:47 AM

Coforge, an Indian information technology services provider, reported a higher first-quarter profit and confirmed its full-year revenue growth target, owing to a significant rise in orders.

The company’s shares surged following this news and was last trading 0.68% higher at Rs 4,850.35. The counter touched an intraday high of Rs 4,916.25 per piece.

In the quarter ended June 30, consolidated net profit increased 10.4% y-o-y to Rs 165 crore rupees ($20.1 million), while revenue increased approximately 21% y-o-y to Rs 2,221 crore rupees.

Coforge’s order intake increased to $531 million in the third quarter, up from $315 million the previous year.

The revenue of the mid-cap IT player climbed by 2.4% in the first quarter of FY24 to Rs 2,221 crore, up from Rs 2,170 crore in the previous quarter. However, the company’s net profit increased 43.9% QoQ to Rs 165.30 crore, owing mostly to a lower base due to an unusual charge of Rs 52.30 crore in the previous quarter.

Despite headwinds in macroeconomic conditions in the IT sector, the company was able to maintain its FY24 growth forecast.

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