Coforge Q3 results: Adjusted PAT rises 10.3% to Rs 268 cr, revenue up 8.4%

Coforge has posted a 10 per cent growth in adjusted net profit for the December quarter to Rs 268 crore, as its CEO exuded confidence that the coming year will continue to see robust and sustained growth for the IT solutions company.

The profit attributable to the owners of Coforge, however, dipped to Rs 215.5 crore from Rs 238 crore in the year-ago period. The company officials attributed this to the minority interest factor with regard to its current 54 per cent holding in Cigniti Technologies, which is set to merge with Coforge with effect from April 1, 2025.

For the just-ended quarter, the adjusted PAT at Rs 268 crore (excluding minority factor), was up 10.3 per cent on a year-on-year basis, the company said in a release.

The revenue stood at Rs 3,318.2 crore, up 8.4 per cent quarter-on-quarter, and 40.3 per cent year-on-year in constant currency terms.

The board has recommended an interim dividend of Rs 19 per share, and the record date for this payout will be January 30, 2025.

"An 8.4 per cent sequential constant currency growth, a 40.3 per cent YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 basis points in margins, a Cigniti business that has already touched an EBITDA margin of 17.3 per cent, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40 per cent higher YoY gives us confidence that the coming year shall once again see robust and sustained growth," Sudhir Singh, Chief Executive Officer and Executive Director of Coforge, said in a release.

Singh told PTI said the margin expansion was on account of improvement in quality of revenue, due to operational execution that has been in play for the organisation.

"The outlook for the company continues to be very strong. The best testament to that is the signed order book... The other reason why the outlook is strong is because the growth has been very broad-based, every industry vertical has grown for us," Singh said.