Coforge Q4 FY’21 Revenue up 7.1% Q-on-Q to $172 Mn
Secures 2 significant deals, Billable headcount up 9% Q-on-Q
Board recommends interim dividend of Rs 13 per share
Noida | May 6th 2021, Thursday: Coforge Limited (NSE: COFORGE), a leading global IT solutions organization today announced a robust financial and operating performance for the quarter and year ended March 31, 2021 (Q4 & FY’21).
The firm has reported continued growth-led momentum, with consolidated revenue growing by 7.1% in dollar terms to $172.1 million during Q4FY’21. In constant currency terms, revenue grew 5.1% over the preceding quarter. In rupee terms, revenue was up by 6.0% sequentially and up by 13.7% year-on-year to Rs 12,615 million during Q4FY’21. EBITDA margin (before ESOPs and acquisition related costs) for the quarter under review was stable at 18.0%, as growth-driven operating leverage was able to offset the impact of a one-time bonus payout during the quarter to a majority of employees who provided extraordinary support to the firm’s operations and business during the pandemic. Coforge recently announced the acquisition of a controlling interest in SLK Global Solutions, and expenses related to that transaction are partly reflected in Q4F’Y21. PAT for the quarter increased 17.0% year-on-year to Rs 1,330 million.
For the full year FY2021, Coforge reported an increase of 11.5% in consolidated revenue to Rs 46,628 million. In constant currency terms, FY2021 revenues were up 6.0% year-on-year. EBITDA margin (before ESOPs and acquisition related costs) stood at 18.0% for the year. The digital and the product engineering portfolio of the firm constituted 52.1% of total revenue for the year. Cumulative order intake during the year is US$ 781 million.
The Board has recommended an interim dividend of Rs 13 per share, and the record date for this payout will be 19th May 2021.
“ The strong business performance in FY’21 is a testament to the resolve and the commitment displayed by all members of Team Coforge. We are exiting FY’21 with a sequential dollar-term growth of 7.1% in the fourth quarter, which forms a very strong ramp for growth and margin expansion in FY’22. Our capabilities, platforms and partnerships in the product engineering, automation, integration and cloud services realm are designed to drive convergence and aid transformation. They are now at scale and are clear differentiators for the firm. With a significantly expanded roster of Fortune 500 clients to work with, we remain committed to delivering impact at the intersection of process and tech knowledge” said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd.
Coforge registered a significant rise in operating cashflow during the quarter under review at 144% of EBITDA. The company also sustained its strong order intake momentum during the quarter, with two significant deal wins. Fresh business of US$ 201 million was secured during the quarter under review, resulting in the order book executable over the next twelve months expanding to US$ 520 million.
Hiring during the quarter was very strong, with total employee strength increasing to 12,391 at the end of the quarter, an increase of 967 people quarter-on-quarter and 1,235 people year-on-year. Billable resources headcount increased by 8.8% QonQ during Q4FY’21. Employee attrition continued to be among the lowest in the industry at 10.5%.
The company is planning for an organic growth of at least 17% in constant currency terms during FY’22 and an expansion of EBITDA margin (excluding ESOP and acquisition related costs) from 18% in FY’21 to 19% in FY’22.
About Coforge Limited
Coforge is a leading global IT solutions organization, enabling its clients to transform at the intersect of domain expertise and emerging technologies to achieve real-world business impact. A focus on very select industries, a detailed understanding of the underlying processes of those industries and partnerships with leading platforms provides us a distinct vantage. We leverage AI, Cloud and Insight driven technologies, allied with our industry expertise, to transform client businesses into intelligent, high growth enterprises.
Today our proprietary platforms power critical business processes across the Financial Services and Travel industries. Our over 12,000 technology and process consultants engineer, design, consult, operate and modernize systems across the world. In April 2021, we added another 7,000 employees into the Coforge family taking our total people strength to about 19,000, with the acquisition of 60% stake in SLK Global Solutions, a business process transformation enterprise offering BPM and digital solutions for the financial services industry.
Learn more about Coforge at www.coforge.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.