Information technology company Coforge, which achieved $1 billion revenue in FY23, expects not to take too long to reach the $2-billion mark, CEO Sudhir Singh told FE in an interaction. While he did not share a timeline, Singh said five years will be too long to achieve the target.
“Internally, we have got the quarter in which we expect to achieve the $2 billion. We are not setting the benchmark right now,” Singh said. “Five years means you are only growing at 14% and even in a year like this (FY24), we are saying 13-16% growth,” Singh said.
In FY23, its revenue from operations rose 24.6% to Rs 8,015 crore ($1 billion), whereas net profit grew 22.7% to `812 crore.
In the quarter ended March, revenue grew 5.6% sequentially to Rs 2,170 crore, but profits fell 53% sequentially to `138 crore on provision for two one-off items.
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Despite highlighting a challenging year ahead for the IT industry, Coforge has given a growth guidance of 13-16% in constant currency terms and is confident of a broad-base growth across verticals.
The company provides intelligent automation and product engineering solutions across different sectors such as banking, insurance, healthcar and travel. It currently gets 31% of its revenues from the banking and financial services (BFS) segment, followed by 23% from insurance and 19% from travel, transportation and hospitality segment.
Geography-wise, Americas contribute 50% to its revenue, followed by Europe, Middle East and Africa at 39%, and rest of the world at 11%.
While Coforge expects the growth in the BFS segment to fall to 15% in FY24 from 47% in FY23 owing to weak macroeconomic factors in the US, it is bullish on the insurance and travel verticals. Moreover, the company is also focusing on the public sector in global markets and the healthcare vertical with its digital automation solutions.
“Insurance, which declined, has been the fastest growing vertical for us this quarter (Q4). Travel is really one vertical where the commitment and the confidence around spending is actually going up every quarter,” Singh said.
Singh said the company feels “confident about the guidance we have given. If you look at our record, the guidance we give at the end of the year, we normally revise it upwards in quarter two or quarter three and we exceed that in quarter four”.
Lately, Coforge has also been leveraging generative artificial intelligence solutions through its own cloud-based platform solution Quasar.
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The company has also integrated AI platform Quasar with ChatGPT for insurance clients with live use cases.
“For ChatGPT there is still a second and a third order evolution that is required because no enterprise client today is going to be willing to put their data on an open network. Nobody will be able to make a bet around security,” Singh said.
In the current form, solutions like ChatGPT will largely be used for the business process outsourcing kind of work for consumer interaction, according to Singh.
As of March-end, Coforge’s executable order book over the next 12 months stands at $869 million. In the January-March quarter, the company’s order intake was $301 million.
With regard to employees attrition which is a key factor for an IT company, Coforge said its last 12 month attrition at 14.1% is among the lowest in the industry.
The company will also be offering Apple iPads to each of its 21,000 employees as it achieved $1 billion revenue.