Indian mid-cap IT stock Coforge soared over 11% on Thursday on the NSE after posting strong earnings in the quarter ended December and as the company announced acquisition plans.
The company’s consolidated net profit grew 3% sequentially to Rs 206.4 crore, and revenue from operations rose over 8% to Rs 3,318.2 crore. Coforge’s newly acquired Cigniti business reported revenue growth of 3.5% in constant currency terms.
Further, this was also the second straight quarter where the order intake was a little over $500 million. “Current order executable is at $1.37 billion, up 40.1% y-o-y,” the company said.
“A 8.4% sequential cc growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth.” said Sudhir Singh, chief executive officer and executive director of the firm.
Additionally, Coforge will also acquire 100% stake in Xceltrait for $17.85 million. Xceltrait, a US based company, specialises in the implementation of ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules.