Coforge Q3 net profit up 24% YoY

Shares of Coforge rose 7% today after the IT firm announced its earnings for the quarter ended December today.

Coforge stock touched an intraday high of Rs 4240.1, rising 6.9% against the previous close of Rs 3,966.40 on BSE. The large cap stock has been gaining for the last five days. Coforge stock trades higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

The IT stock has lost 20.82% in one year and risen 8.19% since the beginning of this year.

Market cap of the firm rose to Rs 25,660 crore. The stock opened higher at Rs 4002 on BSE today. Total 0.27 lakh shares changed hands amounting to a turnover of Rs 11.45 crore on BSE.

Profit rose 24.2% to Rs 228.2 crore in the third quarter against Rs 183.7 crore in the Q3 of last fiscal. Better than expected earnings were led by multiple large outsourcing deals across sectors.

Adjusted EBITDA climbed 17.7% to Rs 379.7 crore in Q3 against Rs 322.6 crore in the corresponding quarter of the previous fiscal.

Revenue was up 24% to Rs 2055.8 crore in Q3 against Rs 16,581 crore in December quarter of last fiscal. On a quarter-on-quarter basis, revenue climbed 4.9% from Rs 1959.4 crore.

The firm has signed the largest number of large deals in a quarter in its history. As a consequence, the order intake at US$ 345 million has been the highest ever. This performance in a seasonally weak quarter sets us up very well for FY2024.” said Sudhir Singh, Chief Executive Officer, Coforge Ltd.

The IT services firm also upgraded its fiscal year 2023 annual revenue growth guidance to 22% in constant currency terms and reaffirmed its adjusted EBITDA annual margin guidance.

The board of Coforge recommended an interim dividend of Rs 19 per share, and the record date for this payout will be February 3, 2023.

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in the in-application development and maintenance, managed services, cloud computing and business process outsourcing. The Company provides computer programming consultancy and related activities. Its geographical segments include Americas, Europe, Middle East and Africa (EMEA), Asia Pacific (APAC), and India. BusinessToday