Coforge stock surges 7% after Q3 PAT jumps 50.7% yoy to Rs183.7cr

28 Jan 2022 , 03:20 PM

Coforge Limited, a leading global IT solutions organization, on Thursday 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.

Revenues for the quarter were $221.6 million and Rs1,658.1cr, up 37.8% yoy in USD terms and 39.3% yoy in INR terms. Adjusted EBITDA margin for the quarter expanded to 19.5%.

Consolidated net profit at Rs183.7cr for December quarter 2021-22 a rise of 50.7% yoy. The company had posted a net profit of Rs122cr in the year-ago period. The PAT was 25% qoq higher from Rs1467cr in Q2FY22.

The company stock was in demand on Friday and towards close of trade on Friday, Coforge Ltd was trading at Rs4,712 per piece up by Rs311.4 or 7.08% from its previous closing of Rs4,400.60 per piece on the BSE. 

The scrip opened at Rs4,501 and has touched a high and low of Rs4,825.50 and Rs4,501 respectively.

Q3FY22 — 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 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 Rs13 per share, and the record date for this payout will be February 8, 2022.