Coforge reports 1.2% sequential growth in Q3 FY15

New Delhi, January 14th 2015, Wednesday: Coforge Limited (NSE: Coforge), a leading global IT solutions organization, today announced its financial results for the quarter ended in December 31, 2014 with a 1.2% sequential increase in revenues to Rs. 595.3 Crores. Operating Profits stood at Rs. 86.2 Crores, indicating a sequential improvement of 4.9% during the quarter.

OCT-DEC FY’15 Quarter Performance at a glance
 

Qtr ended
December 31, 2013

Rs. Cr

Qtr ended
December 31, 2014

Rs. Cr

Growth
YoY
Consolidated Revenue  Rs. 587.3 Rs. 595.3 1.4%
Operating Profit  Rs. 95.7 Rs. 86.2 (9.9%)
Profit After Tax  Rs. 53.1 Rs. 48.2 (9.2%)

 

Net Profits grew 20.2% sequentially during the quarter on the back of improved operating margins, higher other income and lower depreciation over the previous quarter.

“Operating margins improved by 51 bps sequentially to 14.5% as a result of productivity initiatives”, said Mr. Arvind Thakur, CEO and Joint MD, Coforge Ltd. “In constant currency the company grew 1% sequentially during the quarter”, he added.

The Company experienced healthy expansion in revenues in APAC and India on the back of execution of large orders secured during the year, increasing revenue share from the region to 21%. Americas contributed to 44% and EMEA to 35%.

5 new customers were added during the quarter, 2 in the US and 1 each in EMEA, APAC and India. New customers in the US were in the Insurance and Travel & Transportation segment. EMEA also acquired a new Travel & Transportation client. In APAC we secured a new client in the Manufacturing/Distribution space while in India the client added is in the Insurance space.

“109 m USD of new orders were secured during the quarter,” said Mr. Sudhir Chaturvedi, COO, Coforge Ltd. “55% of new business was secured in the US which included a large engagement with an Insurance major”, he added.

In the quarter the Company made strides in the emerging space of Digital Services. 5 responsive regional websites were launched for Air Tahiti. Further, the Company entered into partnerships with new Digital technology players and launched Digital Foresight TM, a predictive analytics solution in the U.S.

Strong presence in select industry segments and our deep understanding of emerging technologies has positioned us well to lead our clients in Digital Services”, said Mr. Rajendra S. Pawar, Chairman, Coforge Ltd.

Total headcount stood at 8,059 at the end of the quarter under review.

The Company has also been successfully appraised at People Capability Maturity Model (PCMM®) Maturity Level 5 again. The evaluation for all locations in India was based on a thorough analysis of the organization’s people practices which has been more stringent with enhanced focus on the quantitative aspects of HR. Developed by the Software Engineering Institute (SEI) at Carnegie Mellon University in Pittsburgh, USA, PCMM is a maturity framework that focuses on continuously improving the management and development of the human assets of an organization. Level 5 is the highest maturity level in the model.

Acknowledgements during the quarter

  • Coforge appraised at People Capability Maturity Model (PCMM®) Maturity Level 5 again.
  • Coforge listed in "The Breakthrough 10 Sourcing Standouts" in Americas by the Information Services Group in its third quarter 2014 Global Outsourcing Index.

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 and PCMM. 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.