Revenues grow 10% QoQ
Noida, Oct 17th 2018, Wednesday: Coforge Limited (NSE: Coforge), a leading global IT solutions organization, today announced its financial results for Q2 FY2019 resulting in revenues of Rs. 907.4 Crores, operating profits at Rs. 163.4 Crores and net profits at Rs. 111.8 Crores.
- Robust revenue growth -- Revenues up 23.1% YoY and 10.0% QoQ
- Strong improvement in Operating Profits, by 37.2% YoY and 25.1% QoQ
- Operating Margins expand by 186 bps YoY and 217 bps QoQ
- Fresh Order Intake expands to USD 160 Mn
Consolidated revenue for the quarter grew 23.1 % over the same period last year and 10.0% sequentially to Rs. 907.4 Crores. Operating profits at Rs. 163.4 Crore represented a growth of 37.2% over the same period last year and 25.1% sequentially. Profit after Tax represents a growth of 66.3% YoY to Rs. 111.8 Crores.
Table below provides a summary of quarter performance.
|Qtr ended||Qtr ended||Growth||Qtr. ended||Growth|
|Operating Margin||18.0%||15.8%||217 bps||16.2%||186 bps|
|Profit After Tax||111.8||85.8||30.3%||67.2||66.3%|
“The extremely robust 10% sequential revenue growth and the 217 bps sequential improvement in Operating Margin is a reflection of the new normal as we target predictable and fast scaling profitable growth.” said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd. “Broad based derisked growth across all verticals and significant investments in building differentiated capability while simultaneously improving margin profile were the highlights of the quarter.”
Insurance vertical grew 11.2% during the quarter contributing to 28.8% of total revenues. BFS vertical grew 6.2% during the quarter contributing to 16.2% of total revenues. Revenues in Travel & Transportation segment is up 9.2% and represents 26.9% of the revenue mix. Share of other segments remained at 28.0%.
Revenues from EMEA expanded 16.0% sequentially during the quarter which now contributes to 34% of the revenue mix. US grew 8.4% sequentially contributing to 49% of the mix. India and APAC business now represents 8% and 9% respectively of the total mix.
Fresh business of USD 160 Mn was secured during the current quarter which included 10 new logos. Of the fresh business secured during the quarter, USD 86 Mn was from the US, USD 39 Mn from EMEA and 35 Mn USD from ROW. This included two engagements in excess of USD 20m. The first large deal came from one of our largest BFS customers for an engagement around DevOps, pro-active monitoring and IT landscape refresh and the other came from an existing client in the Insurance space in US. Three additional deals of more than USD 10m each were also secured.
Order book executable over the next 12 months expanded to USD 363 Mn.
“Significant increase in new logo acquisition, accelerating order book generation and new leadership firmly in position has materially improved the business profile of the company”, said Mr. Arvind Thakur, Vice Chairman and Managing Director, Coforge Ltd.
One of three USD 10 mn deals secured during the quarter included a multi-million dollar Digital engagement with a new Commercial Leasing and Lending major which will warrant driving digital process orchestration across the client’s on-boarding lifecycle.
Digital revenues grew 11.6% QoQ sequentially contributing to 28% of the total revenues. In this quarter we rolled into production an Amazon Alexa driven UI interface for all passengers of a major airline, created a set of cognitive chat-bots for a large Asset Management major, rolled out a blockchain framework framework for the airline industry, delivered a micro-services based platform and environment integration solution for two of our top clients and created an AI based cost out model for a Wealth Management major.
“Over the past few years the Company has been shifting gears and in recent quarters it has transformed completely to engage with the emerging. The business from Digital has been accelerating and has grown 38% YoY and represents 28% of our overall revenue,” said Mr. Rajendra S Pawar, Chairman, Coforge Technologies Ltd
261 people were added during the quarter taking headcount to 10,025 at the end of the period.
- Incessant Technologies, an Coforge company cited as a strong performer in Digital Process Automation by Forrester Research.
- Coforge positioned as a ‘Leader’ in the Cloud Advisory Assessment & Migration Evaluation by Nelson Hall.
- Coforge recognized as the only ‘Star Performer’ amongst ‘Major Contenders’ on the 2018 Everest Group PEAK Matrix™ Insurance Application Services.
Coforge is a leading global IT solutions organization, enabling its clients to transform at the intersect of unparalleled domain expertise and emerging technologies to achieve real-world business impact. The Company focuses on three key verticals: Banking and financial services, Insurance, Travel and Transportation. This domain strength is combined with leading-edge capabilities in Data & Analytics, Automation, Cloud, and Digital.
With over 10,000 employees serving clients across Americas, Europe, Asia, and Australia, Coforge fosters a culture that promotes innovation and constantly seeks to find new yet simple ways to add value for its clients.
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