IT services company Coforge posted first quarter earnings for the financial year 2023-24. It clocked a profit of Rs 165.30 crore, up 10.4 per cent in comparison to Rs 149.70 crore in the corresponding quarter of last year, missing estimates. It posted revenue from operations at Rs 2221 crore, up 21.4 per cent as against Rs 1829.40 crore during the first quarter of FY23. According to a CNBC TV18 poll, Coforge was expected to post Q1 profit at Rs 225 crore and revenue at Rs 2250 crore. The company EBITDA stood at Rs 230.3 crore. It posted a strong operating and financial performance in a challenging quarter for the industry.
The Board also declared an interim dividend of Rs 19 per equity share of the company on the face value of Rs 10 each fully paid up, for the financial year 2023024. It has fixed August 03, 2023 as record date for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend.
Coforge’s order book
Coforge reiterated its FY24 annual revenue growth guidance of 13 per cent to 16 per cent in CC terms, on the back of increase in order intake. It also reaffirmed gross margin improvement of 50 bps compared to FY23. The IT services firm posted its highest ever order intake of $531 million during the first quarter, which is the sixth consecutive quarter of $300+ million order intake. The company signed two $50 million deals in the banking and financial services vertical and it also informed that the company has signed a five- year $300 million TCV deal in the banking space. It said that the total order book executable over the next 12 months stood at $897 million. It also added that six new clients were added during the quarter.
“Exceptional execution by Team Coforge in a testing environment allowed us to deliver another quarter of sustained, robust and profitable growth. The five-year $300 million TCV deal in the BFS space along with another five year $65 million TCV deal in the same sector underlined the execution rigor of the team,” said Sudhir Singh, Chief Executive Officer, Coforge Ltd.
Coforge’s workforce
Coforge increased its net headcount by 1000 employees during Q1FY24. “During the quarter we increased our net headcount by 1000 employees to support future growth, fully rolled out the annual salary increments for our employees on April 1st, honored all commitments to onboard campus hires, met our commitment to distribute around 21,500 i-pads to employees to mark our $1 billion milestone and saw attrition drop down to 13.3 per cent,” said Sudhir Singh.