Coforge Q4 results: Net profit up 95% at Rs 223.7 cr, revenue rises 8.7%

Coforge Q4FY24 results: The board of the company recommended an interim dividend of Rs 19 per share

IT firm Coforge Ltd on Thursday reported a consolidated net profit of Rs 223.7 crore for the quarter ending on March 31 in financial year 2023-24 (Q4 FY24). This is a 94.86 per cent increase in profits compared to Rs 114.8 crore reported in the year-ago period. Sequentially, profit fell by 2.8 per cent from Rs 238 crore reported in Q3.

The company reported a consolidated revenue from operations of Rs 2,358.5 crore, up 8.7 per cent year-on-year from Rs 2,170 crore. Sequentially, revenue from operations rose marginally by 1.5 per cent from Rs 2,323.3 crore.

For the entire financial year, the company reported a consolidated net profit of Rs 808 crore, up 16.4 per cent, compared to Rs 693.8 crore at the end of FY23.

The consolidated revenue from operations for the year stood at Rs 9,179 crore, up 14.5 per cent year-on-year from Rs 8,014.6 crore.

Order intake for the entire financial year went up 56 per cent year-on-year at $1.9 billion, the company said in an exchange filing.

Total headcount of the global firm stood at 24,726, with last-twelve-month (LTM) attrition at 11.5 per cent, improved by 60 basis points quarter-on-quarter and 258 basis points year-on-year.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) margin for the quarter was 19 per cent, rising 105 basis points sequentially.

The IT major also stated that it had signed a definitive agreement to take over Cigniti Technologies Limited, an AI & IP-led digital assurance and engineering services company in India.

"Coforge believes that the acquisition of Cigniti will not only help it grow to a $2 billion by FY27, but equally importantly ensure that Coforge’s operating margins improve by 150-200 basis points by FY27 itself," the company said.

Additionally, Coforge stated that over the next 12 months, the total order book executable stood at $1,019 million, up 17.3 per cent year-on-year.

Speaking on the results, Sudhir Singh, chief executive officer, Coforge Ltd said, “FY24 was an exemplary year where the firm grew 13.3 per cent in CC [constant currency] organic terms, thus becoming one of the very few firms across the industry that was able to deliver on the annual growth guidance given at the beginning of FY24. The $400 million TCV deal signed in Q4, the 56 per cent year-on-year increase in order intake and the 102-basis points sequential margin improvement in Q4 set us up strongly to deliver robust growth in FY25 with expanded margins.”

The board of the company recommended an interim dividend of Rs 19 per share; the record date for this will be May 15, 2024.

Shares of Coforge closed trading at Rs 4,986.10 on the Bombay Stock Exchange ahead of the company's Q4 FY24 result announcement.