Coforge Q2 FY’16 PAT up 70%
New Delhi, October 16th 2015, Friday: Coforge Limited (NSE: Coforge), a leading global IT solutions organization, today announced its financial results for the quarter ended in September 30, 2015 with a revenue increase of 15.2% over the same period last year to Rs. 677.9 Crores. Operating Profits grew 45.2% over same period last year to Rs. 119.4 Crores and Profit after Tax expanded 70.3% to Rs. 68.2 Crores.
Q2 Highlights:Revenues up 5.7% QoQ Operating Profit up 14.6% QoQ Operating margins at 17.6%, an improvement of 135 bps QoQ Digital revenues 15% of mix JULY-SEPTEMBER FY’16 Quarter Performance at a glance
Qtr ended September 30, 2015
Qtr ended September 30, 2014
Rs. CrGrowth YoY Consolidated Revenue 677.9 588.3 15.2% Operating Profit 119.4 82.2 45.2% Profit After Tax 68.2 40.1 70.3%
“Growth in all international geographies and industry segments of focus resulted in 8% sequential growth in international business” said Mr. Arvind Thakur, CEO and Joint MD, Coforge Ltd. “Improved international revenue mix contributed to expansion in margins”, he added.
Business in the US grew 6.2% sequentially contributing to 46% of overall revenues during the quarter. EMEA grew by 5.8% contributing to 35% of the mix, and the revenue share from APAC and India stood at 10% and 9% respectively.
Among industry segments, BFSI grew 8.3% sequentially due to growth in insurance business in USA and NITL in UK. BFSI now contributes to 37% of total revenues, Travel and Transportation grew 6.6% also contributing to 37% of revenue mix, Manufacturing/Distribution contributed to 8% while share of domestic Government business reduced to 3% of the revenue mix.
Order intake during the quarter was USD 80mn resulting in USD 300mn of order book executable over the next 12 months.
“New logos acquired in FY’15 scaled up during the quarter contributing to robust international growth”, said Mr. Sudhir Chaturvedi, COO, Coforge Ltd. “The Company added 4 new logos during the quarter, three of them in the Travel segment”.
During the quarter a European customer successfully implemented Navigator, our new Policy Management System.
Efforts in Digital were rewarded with new wins and strong growth. Two major airlines went live during the quarter with their new responsive web sites providing a whole new Digital experience to their customers. A large customer also went live on a Cloud based SAP HANA solution on a multi-year transaction pricing model. Digital now accounts for 15% of total revenues. The Company carved out Digital Services as a separate business and inducted Graham Clark, an experienced digital practice leader, as its head.
“Our customers are relying on digital technologies to provide a superior experience to their customers”, said Mr. Rajendra Pawar, Chairman Coforge Ltd. “With our deep domain understanding and sharp industry focus we are well positioned to lead in this space”.
364 people were added during the quarter taking the headcount to 9592. Utilization improved to 79.7%. Attrition reduced further to 13.7%.
AcknowledgementsRecognized by ‘Great Place To Work®’ Institute as one of India’s 50 Best IT - BPM Company to Work For in 2015 The Company has been listed among top 5 large (>5000 people) best places to work in IT-BPM industry, in Great Place To Work® 2015 survey Conferred with HR Technology leader award by BusinessWorld HR Excellence Coforge BPO conferred with two awards at National Awards for Excellence in Outsourcing & BPO 2015, by Asia Outsourcing Congress ‘BPO Contract of the Year’ and ‘Award for Skills Development Program of the Year’ Received ‘Talent Management’ award at the Knowledge Management Leadership Awards by Asia Pacific HRM Congress
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, IP Asset or Platform Solutions, Business Process Management, and Digital Services 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. Its data centre operations are assessed at the international ISO 20000 IT management standards.
For further information, please visit www.coforgetech.com
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.