Secures USD 300mn deal from top client
New Delhi, January 14th 2014, Tuesday: – Coforge Limited (NSE: Coforge), a leading global IT solutions organization, today announced its financial results for the quarter ended on December 31, 2013 with a revenue of Rs. 587.3Crores, representing a growth of 14.2% over the same period last year. Operating Profits stood at Rs. 95.7Crores, indicating a 17.8% growth over last year.
|October-December FY'14 Quarter Performance at a Glance|
|Consolidated Revenue||Rs. 514.4||Rs. 587.3||14.2%|
|Operating Profit||Rs. 81.2||Rs. 95.7||17.8%|
|Profit After Tax||Rs. 56.0||Rs. 53.1||-5.3 %|
Operating profits grew sequentially by 8% and margins expanded by 120 bps QoQ. However there was a loss in other income as a result of revaluation of foreign currency assets and liabilities due to period end exchange difference resulting in a decline in net profits.
While revenues from services grew 4.3% sequentially, overall revenues for the quarter remained flat as a result of reduced Purchase for Resale (PFR) in domestic Government business.
“Strong growth in western markets, particularly the US, contributed to the sequential growth in services”, said Arvind Thakur, CEO & Joint MD Coforge. “Growth in the US was driven by expansion of business in the BFSI segment”, he added.
During the quarter the company secured a USD 300mn deal from a top BFSI client for a period of 10 years. This large engagement includes renewal and vendor consolidation with respect to maintenance support and operation around the client’s existing platform as well as major contribution to the development and implementation of its new platform.
“The deal reaffirms our position in the account, gives predictability of revenues and provides a strong platform for growth”, said Mr. Rajendra S. Pawar, Chairman, Coforge Ltd.
BFSI expanded by 8.2% sequentially representing 35% of revenues. Travel & Transportation grew 2.3% sequentially during the quarter contributing to 38% of the total revenues. Other segments like Manufacturing/Distribution and Government contributed to 7% and 6% of revenues respectively.
US geography showed a sequential growth of 7.9% contributing to 44% of revenues during the quarter, and EMEA grew by 4.5% contributing 38% of revenues. Other geographies collectively now contribute to 18% of revenues.
The Company also forayed into Latin America through its partnership with GRU Aeroporto Internacional de São Paulo (Sao Paolo International Airport), to implement and transform the Cargo Handling system at the airport.
Four new clients were added during the quarter, one each in BFSI, Travel & Transportation, Manufacturing and Government segment. In total fresh orders of USD 377mn were secured during the quarter leading to an order book executable over 12 months of USD 265mn.
Total headcount stood at 8,160 at the end of the quarter under review.
Acknowledgements during the quarter
- Coforge was conferred ‘Fortune at the Bottom of the Pyramid’ award for the Agro Commodity Board Mobility solution at the Aegis Graham Bell awards 2013.
- The Company has been featured in the ‘2013 Global Services 100 list’ which comprises of companies that define leadership in the global services business.
Coforge is a leading IT solutions organization, servicing customers in North America, Europe, Middle East, Asia and Australia. It offers services in Application Development and Maintenance, Infrastructure Managed Services, IP Asset or Platform Solutions, and Business Process Outsourcing to organisations in the Financial Services, Travel & Transportation, Manufacturing/Distribution, Healthcare 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 Outsourcing 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
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.