Coforge Q2 Results: Net profit jumps 9.5% QoQ at ₹181 crore, revenue up 2.5%

Coforge, the technology solutions provider, declared their Q2 FY24 results on 19 October. The company posted strong financial and operational results, based on steady growth, expanding margins, and sustained business momentum. The topline increased by 16.2% and the profit slumped by 10% YoY.

In terms of quarterly performance, Coforge witnessed a 2.5% growth in revenue to ₹2,276.2 crore, higher from ₹2,221 crore in the June quarter and a 9.5% increase in profit to ₹181 crore compared to ₹165.3 crore in the previous quarter ended June 30. 

In constant currency terms, the company's revenue rose 2.5% sequentially to ₹2,276.2 crore from ₹2,221 crore in the June quarter. Revenue was $278.1 million versus $271.8 million in dollars terms.

"At the end of the first half, the firm has grown 16.2% in CC terms despite a very challenging market context. This reflects once again, the exceptional executional intensity and commitment of all members of Team Coforge," said Sudhir Singh, Chief Executive Officer, Coforge Ltd.

The company reiterates its forecast for annual revenue growth in fiscal year 2024, which is between 13% and 16% in constant currency terms. It also reaffirms that gross margin will improve by 50 basis points over FY23 and that adjusted EBITDA margin will remain at FY23 levels.

The company in its exchange filing said that the order intake was $313 million, marking the seventhstraight quarter of deals of $300 million or more being won. The entire order book executable, growing 16.6% year over year to $935 million, for the following 12 months. Throughout the quarter, eight new clients were added. After adding 414 QoQ and 1,647 YoY, the headcount at the end of the quarter builds to 24,638.

An interim dividend of ₹19 per share has been recommended by the board; the record date is set for November 2.

Coforge share price opened at intraday low of ₹5016.20 apiece on BSE. At 09:52 IST, Coforge share price was trading at ₹5210, up 2.29%.

"We are seeing strong positive traction in this counter post its quarterly earnings announcement. This traction has helped prices to break beyond the recent congestion zone and formation of a bullish candle during the initial hour of the morning session.

Recently, prices witnessed a base around the 89 ema and move from there is a healthy signs. One can expect extension of upmove towards 5400 in the near term with around 5100 as support," said Rajesh Bhosale — Equity Technical and Derivative Analyst, Angel One.