Coforge Ltd zooms 8 per cent on the back of robust Q3 numbers

The midcap IT stocks story continues to deliver higher returns

This mid-size IT consulting and software company has come out with exceptional quarterly results that investors have shown overwhelming reaction to. The December quarter (Q3) couldn’t have been better for the company as the stock price has gone flying over 8 per cent.

The company recorded revenues of Rs 1,658 crore which witnessed a sequential growth of 5.7 per cent and 39.3 per cent YoY. Its adjusted EBITDA grew by 10.4 per cent QoQ and 50.4 per cent YoY to Rs 322.6 crore. Its margin had been the highest over the last decade as it expanded to 19.5 per cent. The profitability too witnessed a big jump of 25.2 per cent QoQ and 50.7 per cent YoY to reach Rs 183.7 crore. 

The firm saw good business growth from its top ten clients and the deal wins in the quarter remained on strong momentum. The total order book executable over the next 12 months stands at about Rs 5,257 crore. The management has revised its annual revenue guidance to grow around 37 per cent in constant currency terms. It expects adjusted EBITDA to grow around 44 per cent over the previous year. The board has also declared an interim dividend of Rs 13 per share for its shareholders.