Revenue up 42.8% Y-on-Y; up 16.0% Q-on-Q Organic revenue up 32.3% Y-on-Y; up 7.6% Q-on-Q PAT up 60.0% Y-on-Y
Secures 3 large deals including a $105 Mn engagement Board recommends interim dividend of Rs 13 per share
Noida, July 28th 2021, Wednesday: Coforge Limited (NSE: COFORGE), a leading global IT solutions organization today announced its financial results for the quarter ended June 30, 2021 (Q1 FY’22).
The Company has reported a strong financial and operating performance during Q1FY’22, with robust revenue growth, healthy margins, multiple large deal wins, and sustained robust hiring. The quarter under review also includes two months’ contribution from SLK Global, an acquisition that closed in the last week of April 2021.
Q1 FY’22 – Financial highlightsOn consolidated basis, Revenues for the quarter were $ 199.7 million and Rs 14,616 Million: Up 42.8% in dollar terms and 38.3% in rupee terms year-on-year. Up 16.0% in dollar terms and up 15.9% in rupee terms, sequentially. On an organic basis, Revenues for the quarter were $ 185.1 million and Rs 13,546 Million: Up 32.3% in dollar terms and 28.2% in rupee terms, year-on-year. Up 7.6% in dollar terms, 7.4% in rupee terms, and 7.0% in constant currency terms sequentially. EBITDA for the quarter, on a consolidated basis, up 34.8% year-on-year and 4.2% Q-on-Q. EBITDA margin (before ESOPs and acquisition related costs) for the quarter under review on a consolidated basis was 16.1%, reflecting the full impact of annual wage hikes rolled out across the organization worldwide with effect from April 1 as well as other expenses including visa costs and impact of transition in some of the material deals signed over the last six months. PAT for the quarter, on a consolidated basis, increased 60.0% in dollar terms to $ 16.9 mn and 54.7% in rupee terms to Rs 1,236 mn, year-on-year.
Q1 FY’22 – Business highlightsTotal orderbook executable over the next twelve months has expanded 38.7% year-on-year to $645 million as on 30th June 2021. Order intake increased to $318 million, on the back of three large deals secured during the quarter including a $105 million contract that will bring into play the firm’s core transformation capabilities across data architecture and engineering, hybrid cloud management, digital integration, and process-led automation. Total headcount at Coforge, after including the employees of the recently acquired SLK Global, increased to 20,491 during the quarter under review.
"Our technology services stack focused on engineering convergence for the Cloud, Product Engineering service line backed by its own Insuretech platform, Intelligent Automation service line, and Digital Integration capabilities continue to drive both differentiation and growth. Being recognized as a Great Place to Work® further attests to a culture that is uniquely Coforge. With a signed order book, net headcount addition, and large deal size that have set a new record for the firm, we are primed to deliver robust, predictable and profitable growth" Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd.
The company is planning for an organic growth of at least 19% in constant currency terms during FY’22, which is higher than the 17% growth indicated earlier.
The Board has recommended an interim dividend of Rs 13 per share, and the record date for this payout will be 10th August 2021.
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 13,000 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 20,000 now 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 forwardlooking statement that may be made from time to time by or on behalf of the Company.