Coforge Q1 PAT falls 7% QoQ; raises FY22 guidance

The IT company reported a 7% decline in net profit to Rs 123.60 crore on a 15.8% rise in net sales to Rs 1461 crore in Q1 FY22 over Q4 FY21.

The company raised it guidance for an organic growth to at least 19% in constant currency terms during FY22, which is higher than the 17% growth indicated earlier. On a year-on-year basis, consolidated net profit jumped 54.7% while net sales rose 38.3% in Q1 FY22 over Q1 FY21.

In dollar terms, revenues for the quarter were at $199.7 million in Q1 FY22, up 42.8% year on year and 16% quarter on quarter. EBITDA for the quarter, on a consolidated basis, grew by 34.8% YoY and 4.2% quarter on quarter. EBITDA margin (before ESOPs and acquisition related costs) for the quarter under review on a consolidated basis was at 16.1%, reflecting the full impact of annual wage hikes rolled out across the organization.

Coforge's total orderbook executable over the next twelve months has expanded 38.7% YoY to $645 million as on 30 June 2021. Order intake increased to $318 million, on the back of three large deals secured during the quarter including a $105 million contract that will bring into play the firm's core transformation capabilities across data architecture and engineering, hybrid cloud management, digital integration, and process-led automation.

Sudhir Singh, CEO of Coforge said, Our technology services stack focused on engineering convergence for the Cloud, Product Engineering service line backed by its own Insuretech platform, Intelligent Automation service line, and Digital Integration capabilities continue to drive both differentiation and growth. Being recognized as a Great Place to Work further attests to a culture that is uniquely Coforge. With a signed order book, net headcount addition, and large deal size that have set a new record for the firm, we are primed to deliver robust, predictable and profitable growth.

Meanwhile, the board has recommended an interim dividend of Rs 13 per share, and the record date for this payout will be 10 August 2021.

Shares of Coforge were trading 0.37% higher at Rs 4,740.40. Coforge is a leading global IT solutions organization. Its proprietary platforms power critical business processes across the financial services and Travel industries.

Powered by Capital Market - Live News