Coforge delivers strong Q2FY24 results amidst challenging quarter

Coforge Limited has reported robust results for the Q2FY24. The company's Q2 financial highlights include a 16.2% year-on-year increase in revenue, maintaining its annual growth guidance for FY24 and a 2.3% quarter-on-quarter revenue increase in constant currency terms. Additionally, the adjusted EBITDA margin expanded by 160 basis points, and the company secured three significant deals during the quarter.

Key Financial Highlights: Revenue reached INR 22,762 million and $278.1 million. It is an increase of 2.3% in constant currency terms quarter-on-quarter. Year-on-year, the revenue witnessed a growth of 14.1% in constant currency terms.
 

The adjusted EBITDA margin improved to 17.6%, showing a 160 basis points increase quarter-on-quarter.

Consolidated Profit After Tax (PAT) for Q2 was INR 1,810 million, up by 9.5% quarter-on-quarter.

Key Business Highlights: Coforge secured orders worth $313 million, marking the seventh consecutive quarter of $300+ million deal wins. The total order book executable over the next 12 months reached $935 million, up by 16.6% year-on-year.
 

The company added eight new clients during the quarter. The headcount at the end of the quarter increased to 24,638, with 414 additions quarter-on-quarter and 1,647 year-on-year.
 

LTM attrition reduced to 13.0%, down 340 basis points year-on-year. Offshore revenue contribution for IT revenue reached 52%.
 

Mr. Sudhir Singh (C.E.O) commended the company's exceptional performance in the face of a challenging market context. He highlighted the firm's 16.2% growth in constant currency terms during the first half of the fiscal year, emphasizing the dedication of Team Coforge.

The company reiterates its FY24 annual revenue growth guidance of 13% to 16% in constant currency terms, along with a gross margin improvement of 50 basis points compared to FY23. Coforge also aims to maintain adjusted EBITDA margin at similar levels as FY23.

The Board has recommended an interim dividend of INR 19 per share, with the record date set for 2nd November 2023. Coforge's resilient performance and strategic outlook position it well in a competitive market.