Coforge reports 1.1% decline in net profit at Rs 122 cr in Dec quarter

IT firm Coforge Ltd (formerly NIIT Technologies) on Thursday reported a 1.1 per cent decline in consolidated net profit to Rs 122 crore for the December quarter.

The company had posted a net profit of Rs 123.3 crore in the year-ago period, Coforge said in a regulatory filing.

However, its consolidated revenue from operations rose 10.9 per cent to Rs 1,190.6 crore in the quarter under review from Rs 1,073.4 crore in the year-ago period, it added.

On a sequential basis, Coforge's net profit was higher by 1 per cent from Rs 120.7 crore in the September 2020 quarter, while revenue from operations was up by 3.2 per cent from Rs 1,153.7 crore.

"The 3.3 per cent sequential growth in constant currency terms during Q3 has come on the back of an 8.1 per cent growth in constant currency terms during the preceding quarter. With the committed orderbook 18 per cent higher than at the same time last year, the firm has primed itself for sustained, robust and profitable growth in the quarters to come," Coforge Chief Executive Officer Sudhir Singh said.

He added that the company remains "hyper focused" on execution and continues to engineer convergence at the intersection of cloud, automation and data tech.

The company's BFS (banking and financial services) business grew 7.7 per cent sequentially and contributed to 18 per cent of the total revenue. The Travel vertical recorded a quarter-on-quarter growth of 9.8 per cent and contributed to 20 cent of the total December 2020 quarter revenue. Other segments collectively grew 4.7 per cent sequentially and represented 30 cent of the quarter's revenue.

The Insurance vertical declined by 3.9 cent sequentially, contributing to 32 cent of the quarter's topline.

Among geographies, Americas grew by 6.7 cent sequentially (contributing 49 cent to the revenue mix), EMEA (Europe, Middle East and Africa) grew by 3.9 cent (36 cent of topline) and Rest of the World (RoW) declined by 6.5 cent, contributing 15 cent to the revenue mix.

The order intake during the quarter was strong, with two large deal wins, Coforge said.

Fresh business of USD 192 million was secured during the quarter under review. Coforge added 11 new clients during the quarter.

"On the back of this continued deal signing momentum, the order book executable over the next twelve months increased to USD 501 million, representing a growth of 18 per cent year-on-year," Coforge said.

The company saw its attrition at 10.4 cent. Its total employee strength increased to 11,424 at the end of the quarter, an addition of 262 people from the September quarter, it added.