Info-tech

Coforge Q2 net profit marginally up; sees order intake of $201 million

PTI New Delhi | Updated on October 23, 2020 Published on October 23, 2020

IT firm Coforge Ltd (formerly NIIT Technologies) has reported a marginal rise in consolidated net profit to ₹120.7 crore for the second quarter ended September 30.

The company had posted a net profit of ₹119.5 crore in the July-September quarter last year, Coforge said in a regulatory filing on Thursday evening.

The company’s consolidated gross revenue rose 11.1 per cent to ₹1,153.7 crore in the quarter under review from ₹1,038.5 crore in the year-ago period, it added.

On a sequential basis, the net profit was higher by 51.1 per cent from ₹79.9 crore in the June 2020 quarter, while gross revenue was up by 9.1 per cent over ₹1,057 crore.

 

“The 8.1 per cent sequential growth in constant currency terms came on the back of growth across all verticals, all geos and all account-sized based cuts for the firm,” Coforge Ltd Chief Executive Officer Sudhir Singh said.

The sharp sequential increase in EBITDA (earnings before interest, taxes, depreciation, and amortization), in order intake and order executable, is a testament to the tenacity of and the consistent execution delivered by Team Coforge despite the pandemic-induced headwinds, he added.

“As organisations pivot towards data, cloud and AI-led transformation the space for innovative and agile service providers in the broader tech services sandbox continues to expand,” he said.

The insurance vertical expanded 13.6 per cent quarter-on-quarter, contributing 34 per cent to the quarter’s total revenue, the company said.

The BFS (banking and financial services) business grew 8.5 per cent sequentially and contributed 17 per cent to the total revenue, it added.

The travel segment recorded a quarter-on-quarter growth of 6 per cent and contributed 19 per cent to the revenue.

Other segments collectively grew 6.7 per cent quarter-on-quarter and represented 30 per cent of the overall revenue.

Among geographies, Americas grew by 11.9 per cent sequentially, contributing 48 per cent to the revenue mix, EMEA grew by 7.3 per cent (contributing 36 per cent) and rest of the world grew by 5.6 per cent (contributing 16 per cent).

“The order intake during the quarter was exceptionally strong, with two large deal wins. The fresh business of USD 201 million was secured during the quarter under review, which is higher on both q-o-q and y-o-y basis,” Coforge said.

A total of 12 new clients were added during the quarter.

“On the back of this continued deal signing momentum, the order book executable over the next twelve months increased to USD 489 million, representing a growth of 21 per cent y-o-y,” it said.

The company had a headcount of 11,162 people with the net addition of 564 people. Attrition was at 10.5 per cent.

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Published on October 23, 2020
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