Coforge Q3 Results: Profit rises 20% YoY to Rs 236 crore; dividend declared at Rs 19/share

IT firm Coforge on Friday reported a 19.6% year-on-year (YoY) rise in its net profit to Rs 235.9 crore for the quarter ended December 31, 2022. The company reported a net profit of Rs 197.2 crore in the same quarter of the previous fiscal year.

The company's revenue during the quarter rose 24% to Rs 2,055.8 crore against Rs 1,658.1 crore in the corresponding quarter of last year. The adjusted EBITDA margin for the quarter stood at 18.5%.

The board has recommended an interim dividend of Rs 19 per share, and the record date for this payout will be February 3, 2023, the company said in a release.

Revenue from both the US and Europe, which account for about 80% of the company's total revenue, rose in the third quarter, despite rising concerns over growth and tech spending in export markets, especially Europe.

In Q3FY23, Coforge recorded an order intake of $345 million, the fourth consecutive quarter of over $300 million order intake. The company also announced that its total order book executable over the next 12 months was at $841 million.

“The firm has signed the largest number of large deals in a quarter in its history. As a consequence, the order intake at $345 million has been the highest ever. This performance in a seasonally weak quarter sets us up very well for FY2024,” said Sudhir Singh, Chief Executive Officer, Coforge.

The company added 11 new clients during the quarter. The firm’s headcount at the end of the quarter was 22,505, and LTM attrition was down 60 bps QoQ to 15.8 per cent.

Following the Q3 results, Cofroge share was trading nearly 7% higher at Rs 4,250 on BSE.

The company has upgraded its fiscal year 2023 annual revenue growth guidance to 22% in constant currency terms and reaffirmed its adjusted EBITDA annual margin guidance.