Coforge Q1 net profit up 54.7% to ₹123.6 crore

PTI New Delhi | Updated on July 28, 2021

Firm’s consolidated revenue rose 38.3 per cent to ₹1,461.6 crore

IT firm Coforge, formerly known as NIIT Technologies, on Wednesday, reported a 54.7 per cent jump in consolidated net profit at ₹123.6 crore in the three months to June.

The company had posted a net profit of ₹79.9 crore in the year-ago period, Coforge said in a regulatory filing.

Its consolidated revenue rose 38.3 per cent to ₹1,461.6 crore in the first quarter of FY22, as against ₹1,057 crore in the year-ago period.

This includes two months’ contribution from SLK Global, an acquisition that Coforge closed in the last week of April.

On an organic basis, revenues for the quarter stood at $185.1 million (up 32.3 per cent year-on-year) and at ₹1,354.6 crore (up 28.2 per cent y-o-y).

Organic growth target

Coforge is looking at an organic growth of at least 19 per cent in constant currency terms during FY22, higher than the 17 per cent growth indicated earlier.

In the June quarter, the company’s revenues (organic basis) grew 7 per cent in constant currency terms sequentially, the filing said.

“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,” Coforge Chief Executive Officer Sudhir Singh said.

With a signed order book, net headcount addition, and large deal size that have set a new record for the firm, Coforge is primed to deliver robust, predictable and profitable growth, he added.

Total headcount at Coforge, after including employees of the recently acquired SLK Global, increased to 20,491 during the quarter under review.

Total orderbook executable over the next 12 months has expanded 38.7 per cent y-o-y to $645 million as on June 30, 2021.

Its 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, it said.

The company’s board has declared the first interim dividend of ₹13 per equity share for the financial year FY22. It has fixed August 10, as the record date for ascertaining the eligibility of shareholders for the payment of the interim dividend.

Published on July 28, 2021

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