Coforge Q2 Results FY2024, Net profit at Rs.1810 million

On 19th October 2023, Coforge announced its quarterly results.

Key Highlights:

-  The quarter's revenue was $278.1 million and Rs.22,762 million INR. Constant currency revenue increased QoQ by 2.3%, in terms of USD by 2.3%, and in terms of INR by 2.5%. Revenue increased by 14.1%  in CC terms, 12.6% in USD, and 16.2% in INR on a yearly basis. 
- Adjusted EBITDA margin increased by 160 bps to 17.6% QoQ.
- Consolidated Profit After Tax (PAT) for the second quarter was Rs.1,810 million, up 9.5%. Q-o-Q

Segment Highlights:

- Industry segment growth was led by  BFS vertical with revenue of 31.6%, Insurance at 22.6%,  Travel, Transportation and Hospitality at 18.5% and  Healthcare, Retail, Hi-Tech, Manufacturing and Public Sector at 27.3%
- Among Horizontals, Product Engineering posted a revenue of about 8.9%, Intelligent Automation at 12.1%, Data and Integration at 24.5%, CIMS at 18.5%, Software Engineering at 26.6% and Business Process Management at 9.5%. 
- Among major markets,  American Market posted revenue of about 49.4% and EMEA at 38.8%. Rest of the World at 11.8%

Business Highlights:

- Order intake was $313 million, marking the seventh quarter in a row with $300+ million in transaction success.
- The total order book that can be executed in the upcoming year is $935 million, up 16.6% YoY.
- During the quarter, 8 new clients were added.
- Headcount increased to 24,638 at the end of the quarter, up 414 QoQ and 1,647 YoY. LTM attrition was 13.0%, down 340 bps YoY.
- The contribution of offshore revenue climbed to 52% (restricted to IT revenue).
- The Board has recommended an interim dividend of Rs.19 per share, and the record date for this payout will be 2nd November 2023.

Commenting on the results, Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd said: “At the end of the first half, the firm has grown 16.2% in CC terms despite a very challenging market context. This reflects once again, the exceptional executional intensity and commitment of all members of Team Coforge.”