Coforge declares Consolidated Annual and Quarter Results
Net Profit increases by 57% over same quarter last year
Consolidated Quarter Results (January-March 2010)
Consolidated Revenues at Rs. 239.2 Crores, up 4% QoQ Operating Profits at Rs. 52.9 Crores, up 4% QoQ Operating Margin at 22%, increase of 7 bps QoQ Profit After Tax at Rs. 41.3 Crores up 17% QoQ Fresh order intake of USD 124 MnCoforge Limited, a leading IT solutions organization, announced its consolidated fourth quarter result for the quarter ended March 31, 2010. The Company reported revenues of Rs. 239.2 Crores for the quarter ended March 31, 2010, representing a sequential growth of 4% Operating Profits also improved by 4% to Rs. 52.9 Crores. Operating Margin improved 7 bps to 22%.
Profit After Tax for the quarter stood at Rs. 41.3 Crores indicating a sequential growth of 17% and 57% over the same period last year.
JAN-MAR QUARTER Performance at a Glance
Qtr ended Mar 31, 2009 Rs. Cr
Qtr ended Mar 31, 2010 Rs. Cr
Growth YoY
Consolidated Revenues
227
239.2
5%
Operating Profit
40.4
52.9
31%
Operating Margins
18%
22%
432 bps
Profit After Tax
26.3
41.3
57%
"A strong quarter with growth on all business parameters demonstrated the company’s successful navigation through the challenges posed by the economic crisis of the past" said Mr. Arvind Thakur, CEO, Coforge Ltd. "Fresh orders worth USD 124 m secured during the quarter created a healthy order position with USD 147 m executable over the next 12 months," he added.
During the quarter, Coforge bagged a Rs 228 Cr contract from the Border Security Force for the Intranet Prahari project. In addition 5 more significant clients were added with two in the manufacturing segment, one each from Transportation, and, Insurance, and one for Remote Infrastructure Managed Services.
The US demonstrated stability with revenue share at 33% of the total, while the revenue share from APAC and India increased substantially to 29%. EMEA share of revenues declined to 38% being impacted by weakening of both the GBP and Euro.
"Significant traction in emerging markets like APAC and India helped mitigate challenges of exchange rate volatility in Europe," said Mr. Rajendra S Pawar, Chairman, Coforge Ltd.
During the quarter 362 people were added taking the total headcount to 4476 at the end of the period.
Acknowledgements during the quarter:
Ranked amongst top 7 service providers in Gartner’s Industry research report in 2010 “Seven Vendors Dominate the European Market for General Insurance Policy Administration Systems” Coforge GIS received the Best Software Company of the Year award 2009–2010 at the Map India 2010 Conference Received the Award for “Innovation in Career Development,” from the Global HR Excellence Awards at the Global HRD Congress 2010 Amongst the top 50 IT Innovators for the year 2009 by NASSCOMConsolidated Annual Results FY 2009-10 The Company also announced its Annual Results for FY 2009-10.
Overcoming adversities through the year the company reported a 10% improvement in net profits with PAT at Rs 126.4 Crores even as revenues declined by 7% to 913.7 Crores. Operating Profits improved by 7% to Rs. 188.8 Crores.
ANNUAL Performance at a Glance
Yr ended Mar 31, 2009 Rs. Cr
Yr ended Mar 31, 2010 Rs. Cr
Growth YoY
Consolidated Revenues
979.9
913.7
(7%)
Operating Profit
176.4
188.8
7%
Operating Margins
18%
21%
266bps
Profit After Tax
114.8
126.4
10%
"Quarter-on-Quarter growth through the year, with improved margins in each quarter demonstrated the Company’s resilience to the formidable challenges posed by the environment" said Mr. Arvind Thakur, CEO, Coforge Ltd.
Operating margins for the full year stood at 21% an increase of 266 bps over previous year as a result of sustained improvement in the operating efficiencies and steady increase in offshore component of revenues.
Business in Banking and Finance Services and Insurance together stood at 43%, Travel, Transportation and Logistics at 31% while Retail and Manufacturing contributed 11%. Focus on the domestic market lead to a significant increase in the revenues from the Government which now represents 5% of the overall revenues.
Elaborating on the strategy, Mr. Rajendra S Pawar, Chairman, Coforge Ltd.said "Shifting focus to markets less challenged by the crisis and non-linear value-added services helped bring growth back to the business".
Board of directors recommended a dividend of Rs. 7 per equity share.
Further acknowledgements during the year:
Ranked Number 1 in the Datamonitor Black Book of Outsourcing 2009 Travel Industry survey for the second consecutive year Ranked amongst the Best 5 Companies in Air Transportation by The International Association of Outsourcing Professionals (IAOP) in its The Global Outsourcing 100 listing for the year 2009 Ranked among the Best 20 Industry leaders in Financial Services (Insurance and Banking) by The International Association of Outsourcing Professionals (IAOP) in its The Global Outsourcing 100 listing for the year 2009 Ranked amongst the Top 20 Best Managed Outsourcing Vendors by the 2009 Black Book of Outsourcing Ranked amongst India’s 500 Best Performing Companies by demonstrating exceptional innovation and perseverance by Inc. India for the year 2009
About Coforge Coforge is a leading IT solutions organization, servicing customers in North America, Europe, Asia and Australia. It offers services in Application Development and Maintenance, Enterprise Solutions including Managed Services and Business Process Outsourcing to organizations in the Financial Services, Travel & Transportation, Retail and Distribution, and Government sectors. Coforge follows global standards of development, which includes ISO 9001:2000 certification, assessment at Level 5 of both SEI-CMMi version 1.2 and ISO 27001 information security management certification. Its data centre operations are assessed at the international ISO 20000 IT management standards.
For further information, please visit www.coforgetech.com
Safe Harbor Certain statements in this release are forward-looking statements. The business involves various risks, and uncertainties that could result in the actual results to differ materially from those indicated here. All forward looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.