homeearnings NewsCoforge Q1 net profit up 54.7% to Rs 123.6 crore; shares hit all time high

Coforge Q1 net profit up 54.7% to Rs 123.6 crore; shares hit all-time high

IT firm Coforge Ltd, formerly known as NIIT Technologies, on Wednesday reported a 54.7 percent jump in consolidated net profit at Rs 123.6 crore in the three months to June. The company had posted a net profit of Rs 79.9 crore in the year-ago period, Coforge said in a regulatory filing.

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By CNBCTV18.com Jul 28, 2021 12:51:36 PM IST (Updated)

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Coforge Q1 net profit up 54.7% to Rs 123.6 crore; shares hit all-time high
Coforge Ltd on Wednesday reported a 54.7 percent jump in consolidated net profit at Rs 123.6 crore in the quarter ended on June 30. Formerly known as NIIT Technologies, Coforge had posted a net profit of Rs 79.9 crore in the year-ago period, the midcap IT firm said in a regulatory filing.

Coforge share traded at Rs 4,705.10 apiece on BSE at 12.17 pm, down 0.38 percent on Wednesday. The stock hit an all-time high of Rs 4,827.3 in intra-day trade. So far this year, it has returned over 70 percent, while the one-year return on the stock is more than 166 percent. In the last 10 years, Coforge shares have gained 1966 percent against a Sensex return of 186 percent.
Coforge's consolidated revenue rose 38.3 percent to Rs 1,461.6 crore in the first quarter of FY22, as against Rs 1,057 crore in the year-ago period. This includes two months' contribution from SLK Global, an acquisition that Coforge closed in the last week of April.
“We are very clear that we will deliver the 19 percent EBITDA pre-RSU which is what we had guided to at the beginning of the year,” Sudhir Singh, Chief Executive Officer, Coforge said in an interview with CNBC-TV18.
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“On that count we feel confident about the fact that in this quarter itself, which is Q2FY22, we should see around 200 basis points (bps) improvement from that 16.1 percent level in Q1FY22 itself,” he added.
On an organic basis, revenues for the quarter were at USD 185.1 million (up 32.3 percent year-on-year) and at Rs 1,354.6 crore (up 28.2 percent YoY). Coforge is looking at an organic growth of at least 19 percent in constant currency terms during FY22, higher than the 17 percent growth indicated earlier.
In the June quarter, the company's revenues (organic basis) grew 7 percent in constant currency terms sequentially, the filing 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," Coforge Chief Executive Officer Sudhir Singh said.
With a signed order book, net headcount addition, and large deal size that have set a new record for the firm, Coforge is primed to deliver robust, predictable, and profitable growth, he added. Total headcount at Coforge, after including the employees of the recently acquired SLK Global, increased to 20,491 during the quarter under review.
Total order book executable over the next 12 months has expanded 38.7 percent YoY to $645 million as of June 30, 2021. Its order intake increased to $318 million on the back of three large deals secured during the quarter, including a $105 million contracts 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, it said.
The company's board has declared the first interim dividend of Rs 13 per equity share for the financial year FY2021-22. It has fixed August 10, as the record date for ascertaining the eligibility of shareholders for the payment of the interim dividend.
—With inputs from PTI and CNBC-TV18

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