Coforge Q2 net profit falls 10% YoY, but rises sequentially; Rs 19 dividend declared

In rupee terms, the firm's revenue was up quarter-on-quarter by 2.3% in constant currency (CC), and 2.3% in dollar terms, while revenue was up Y-o-Y by 14.1% in CC, 12.6% in dollar terms and 16.2% in rupee terms.

On a sequential basis, the net profit and revenue surged 9.6% and 2.47%, respectively.

The earnings before interest, taxes, depreciation and amortization (EBITDA) came in at Rs 263.7 crore, with the operating margin at 11.6%.

The IT company has maintained its FY24 constant currency revenue growth guidance of 13-16%. Coforge has reaffirmed its gross margin improvement of 50 basis points, compared to FY23 and its adjusted EBITDA margin to be at similar levels as FY23.

“At the end of the first half, the firm has grown 16.2% in CC terms despite a very challenging market context. This reflects once again, the exceptional executional intensity and commitment of all members of Team Coforge,” said Sudhir Singh, Chief Executive Officer, Coforge Ltd.

The one-time increase in employee stock ownership plan (ESOP) has affected this quarter, the company said.

The Board has also declared a second interim dividend of Rs 19 per equity share of the company at a face value of Rs 10 each fully paid-up, for the financial year 2023-24.

The record date for the purpose of ascertaining the eligibility of shareholders for payment of the dividend has been fixed on November 02, 2023.

The payment of second interim dividend of dividend warrants would be done within 30 days from the date of declaration of dividend, it said.

The Noida-based company's order intake stood at $313 million, seventh consecutive quarter of over $300 million deal wins.

Total order book executable over the next 12 months was at $935 million, up 16.6% YoY.

The company said that eight new clients were added during the second quarter.

Its headcount at the end of the quarter rose to 24,638, an addition of 414 QoQ and 1,647 YoY, while attrition stood at 13.0%, down 340 basis points YoY.