Coforge soars after strong Q3 performance; bags orders worth $501 million

Coforge zoomed 11.46% to Rs 9167.35 after the company reported 9.5% rise in net profit, excluding minority interest, to Rs 255.9 crore in Q3 FY25 from Rs 233.6 crore in Q2 FY25.

The companys gross revenues increased by 8.4% quarter-on-quarter (QoQ) to Rs 3,318.2 crore in the December 2024 quarter.

In dollar terms, revenue was $397.1 million, up 7.5% QoQ and 40.8% YoY in USD terms.

In constant currency terms, the revenue rose by 8.4% QoQ and 40.3% YoY in constant currency (CC) terms.

While EBITDA improved by 7.2% to Rs 519 crore, EBITDA margin declined by 17 basis points to 15.6% in Q3 FY25 as compared with Q2 FY25.

Profit before tax in Q3 FY25 stood at Rs 343.3 crore, up by 9.5% from Rs 313.5 crore in Q2 FY25.

As compared with Q3 FY24, the companys revenue and PAT are higher by 42.8% and 5.4%, respectively.

Coforge recorded broad based growth across Americas (69.2%), EMEA (20.5%) and RoW (3.3%) YoY. The Cigniti business delivered 3.5% cc QoQ growth and its EBITDA margin improved to 17.3%; up from 11% in Q4 FY24.

The companys order intake for Q3 FY25 was $501 million, making it the second consecutive quarter with order intake of more than $500 million.

Sustaining its large deal momentum, the company signed four large deals this quarter across North America and ASEAN regions.

Coforges headcount stood at 33,094, with net addition of 611 on a sequential basis. Headcount has increased 16% organically since the beginning of the year.

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

Sudhir Singh, chief executive officer and executive director, Coforge, said: A 8.4% sequential cc growth, a 40.3% cc YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a Cigniti business that has already touched an EBITDA margin of 17.3%, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth.

Coforge is a global digital services and solutions provider that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. The firm has a presence in 21 countries with 26 delivery centers across nine countries.

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