Coforge under pressure despite reporting strong quarterly results

The company has achieved strong operating as well as financial performance during Q1FY22 with robust revenue growth, large deal wins along with consistent global hiring.

On Wednesday, Coforge Limited, an Indian multinational information technology company, announced its financial results for Q1FY22. The performance reported also includes a contribution from SK Global, an acquisition that concluded in the last week of April 2021. 

In dollar terms, the revenue showed an improvement of 42.8 per cent on a YoY basis whereas, in rupee terms, the revenue was up by 38.3 per cent on a YoY basis. EBITDA margins expanded 34.8 per cent on a YoY basis and 4.2 per cent on a QoQ basis. Net profit of the quarter grew by 60 per cent in dollar terms and stood at $16.9 million while 54.7 per cent in rupee terms, recording Rs 123.6 crore in Q4FY22. 

The order book for the company has enhanced on the back of three large deals secured during the quarter including a $105 million contract, which will require the company's involvement of firm's core transformation capabilities across data architecture and engineering, hybrid cloud management, digital integration & process-led automation. Going forward, the company expects organic growth of at least 19 per cent in constant currency terms in FY22, which is above the 17 per cent expressed earlier. The board of directors has recommended an interim dividend of Rs 13 per share.

Coforge is an Indian multinational information technology company based in Noida (India) and New Jersey (USA). It is a leading global IT solutions organisation, enabling its clients to transform at intersect of unparalleled domain expertise and emerging technologies to achieve real-world business impact. 

On Wednesday, the share of Coforge Ltd was trading under pressure at Rs 4,631.90 per share, which is 1.93 per cent down on BSE.