Coforge FY2014 revenues up 14%

103% increase in Order Intake for the year

Board recommends Rs. 9 per share as dividend for the year

New Delhi, May 9th 2014, Friday: –Coforge Limited (NSE: Coforge), a leading global IT solutions organisation, announced its audited results for the year ended in March 31, 2014. Consolidated revenues for the year grew 14% over the previous year to Rs. 2305 Crores and operating profits improved by 7% to Rs. 351 Crores. PAT for the year was Rs. 230 Crores.

The board recommended Rs. 9 per equity share as dividend for FY’14.

“FY’14 has been a year of consolidation” said Mr. Arvind Thakur, Chief Executive Officer, Coforge Ltd. “During the year we enhanced our focus in western markets and reorganized ourselves to create a platform for higher growth.”

Business in the US grew 29% contributing to 42% of overall revenues. EMEA contributed to 37% while the revenue share from APAC and India stood at 21%. Growth in the US was a result of the revival of business in the BFS segment. Overall BFSI contributed to 34% of revenues while Travel and Transportation contributed to 37% of total revenues. Other segments of focus like Manufacturing & Government contributed to 7%, and 8% of the revenue mix respectively.

The Company created a new position of Chief Operating Officer (COO) during the year to engage deeply with the clients and drive new business. All sales and delivery for IT & Business Process Management (BPM) services in all geographies were consolidated under this role. Infrastructure Management Services (IMS) is seen as a high growth segment which has now been carved out as an Independent Business Unit reporting to the COO. This would enable the Company to pursue large integrated deals and put in place the right culture to successfully execute this business. A focused position has also been created to address the emerging market for Digital Services.

749mn USD of new business was secured during the year, an increase of 103% over previous year.

"The year was characterized by strong intake of fresh business. Order intake doubled for the year", said Sudhir Chaturvedi, COO Coforge, "83% of the intake was from the western markets and this included large contracts in the US".

 

Jan-March FY'14 Quarter Performance at a Glance
 

Qtr ended
March 31, 2013

Rs. Cr

Qtr ended
March 31, 2014

Rs. Cr

Growth
YoY
Consolidated Revenue  Rs. 537.2 Rs. 588.5 9.5%
Operating Profit  Rs. 88.4 Rs. 89 0.7%
Profit After Tax  Rs. 56.6 Rs. 61.9 9.5 %

 

Consolidated revenues for the quarter increased by 0.2% sequentially to Rs. 588.5 Crores. Operating margins declined 116bps sequentially to 15.1% due to decline in revenues in Travel and Transportation during the quarter.

Fresh orders of USD 144Mn were secured during the quarter leading to USD 290Mn worth of orders executable over the next 12 months. This includes two contracts over USD 25mn from existing US based BFSI clients. Four significant clients were added during the quarter, two in the Travel and Transportation segment, 1 each in Government and Manufacturing.

“FY‘15 starts with a strong order book representing a 15% increase in orders executable over the next 12 months”, said Mr. Rajendra S. Pawar, Chairman, Coforge Ltd.

130 people were added during the quarter taking the total headcount to 8290 at the end of the period under review, and attrition rate being 14.37%.

Acknowledgements during the quarter

  • Coforge was conferred with “Best Offshore Service Provider” award by DB Systel, the ICT subsidiary of Deutsche Bahn (German Railways) for the third consecutive year.
  • Coforge and Morris Communications secured “Best Managed Services Outsourcing Excellence Award” by Outsourcing Center, for their strategic partnership for integrated IT and BPO services.
  • Pratibha Advani, Chief Financial Officer, Coforge won “Lifestyle Icon of the Year” award from CEO India.

About Coforge

Coforge is a leading global IT solutions organization, servicing customers in Americas, Europe, Middle East, Asia and Australia. It offers services in Application Development and Maintenance, Infrastructure Management Services, IP Asset or Platform Solutions, and Business Process Management to organisations in the Financial Services, Travel & Transportation, Manufacturing/Distribution, and Government sectors. The Company adheres to major global benchmarks and standards, having secured the ISO 9001:2000 certifications and the ISO: 27001 Information Security Management accreditation. Coforge also follows global standards of development. It has been assessed at Level 5 of SEI CMMi version 1.2. Coforge Business Process Management conforms to the highest quality standards such as COPC and Six Sigma. 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.