Coforge Q2 PAT rises 18% QoQ to Rs 146 crore

Coforge reported 18.7% rise in consolidated net profit to Rs 146.7 crore in Q2 FY22 from Rs 123.6 crore in Q1 FY22.

Gross revenues increased by 7.4% QoQ to Rs 1,569.4 crore during the quarter. In dollar terms, the company's revenue in Q2 FY22 was $212.8 million (up 6.5% QoQ and 37.4% YoY).

EBITDA in the second quarter improved by 23.9% to Rs 292.3 crore from Rs 235.9 crore reported in the first quarter of the financial year 2021-22. EBITDA margin was at 18.6% as on 30 September 2021 as against 16.1% as on 30 June 2021.

Profit before tax in Q2 FY22 stood at Rs 206.1 crore, up by 26.3% from Rs 163.2 crore in Q1 FY22.

The IT firm's net profit and revenues have risen by 21.6% and 36% in Q2 FY22 over Q2 FY21.

Coforge said that the total order book executable over the next twelve months has expanded 40.6% year-on-year to $688 million as on 30 September 2021.

Order intake during the quarter was $285 million, on the back of three large deals secured during the quarter out of which two were greater than $ 50 million TCV each.

Total headcount at Coforge, after including the employees of the recently acquired SLK Global, increased to 20,786 during the quarter under review. Attrition rate increased to 15.3% in Q2 FY22 from 12.6% in Q1 FY22 and 10.5% in Q2 FY22.

Sudhir Singh, Chief Executive Officer, Coforge, said: Our investments in product engineering, cloud, data, automation and integration capabilities continue to power our path to being a $1 billion plus firm next year. This is a landmark year for the firm as we anticipate that we shall grow revenues by at least 35% and our adjusted EBITDA by at least 40% over the previous year.

In view of sustained deal wins and incremental business from its customer base, the company is now planning for a growth (excluding SLK Global contribution) of at least 22% in constant currency terms during FY'22, which is higher than the at least 19% growth indicated earlier.

This translates to at least 35% of consolidated (including SLK Global) growth in constant currency terms for the firm in FY22. The firm continues to target an adjusted EBITDA margin of 19% for the year.

The board has recommended an interim dividend of Rs 13 per share, and the record date for this payout will be 8 November 2021.

The scrip slumped 9.37% to currently trade at Rs 4911.70 on the BSE.

Coforge is a leading global IT solutions organization. Its proprietary platforms power critical business processes across the financial services and Travel industries.

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