Coforge Share Price: The Noida-based IT services firm Coforge Ltd., reported outstanding financial results for the July-September 2024 quarter, significantly surpassing market expectations. This performance, driven by key acquisitions and consistent order wins, resulted in a strong rally in Coforge’s share price, which surged 10% and hit the upper circuit after the Q2 report.
Coforge Result Highlights:
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Revenue Growth:
- Coforge’s consolidated revenue surged by 27.6% QoQ to ₹3,062 crore, beating the estimated ₹2,713 crore.
- The revenue increase comes from synergies following the acquisition of Cigniti Technologies, which boosted overall operations.
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Profit and Margins:
- Net profit jumped by 67.7% to ₹234 crore, slightly below the forecast of ₹246 crore.
- EBIT (Earnings Before Interest and Tax) rose 35.8% to ₹288 crore, though the margin remained lower than expected at 9.4% versus the estimated 12.5%.
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Dividend Announcement:
- The board approved an interim dividend of ₹19 per share, with a record date of October 11, 2024.
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Acquisition of Cigniti Technologies:
- Coforge completed its acquisition of a 54% stake in Cigniti Technologies for $220 million during Q2.
- CEO Sudhir Singh stated that this acquisition would help the company become a $2-billion revenue enterprise.
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Order Intake and Client Growth:
- The company secured $516 million in orders during Q2, marking the eleventh consecutive quarter of $300 million-plus deal wins.
- Coforge also added 13 new clients in the quarter, reflecting strong market demand for its services.
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Employee Growth and Attrition:
- Coforge’s headcount increased by 5,871 employees, including 4,430 from Cigniti, bringing the total to 32,483.
- Attrition dropped by 130 basis points, reaching 11.7% on a trailing twelve-month basis.
Market Reaction:
Despite the strong financial performance, Coforge Share Price dipped 0.41% to ₹6,795.60 on Tuesday, October 22, while the benchmark Sensex fell by 1.15%. However, following the quarterly results released after market hours, the stock rallied and hit the upper circuit the next day.
CEO Sudhir Singh on the company’s future growth
CEO Sudhir Singh emphasized the company’s confidence in its future growth, citing a 40% year-on-year increase in the order book and strong synergy with Cigniti, which has exceeded expectations. Coforge remains on track for sustained growth and margin expansion in the coming quarters.
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