Coforge Q4 earnings: Net profit slipped to Rs 229.2 crore in Q4 against Rs 242.8 crore in the December 2023 quarter. The board of the firm announced an interim dividend of Rs 19 per share.
What is Coforge Company?
Coforge is a global provider of IT solutions with expertise in business process management, technology consulting, and digital transformation. By prioritizing innovation and ensuring client satisfaction, Coforge has emerged as a prominent player in the market.
Since its founding in 2004, Coforge has expanded quickly, servicing customers in more than 30 countries and a variety of industries, including manufacturing, finance, insurance, and healthcare. The company’s group of highly qualified experts puts out endless effort to provide innovative solutions that assist companies in staying one step ahead of the competition.
Because of its dedication to quality and perfection, Coforge has established a solid reputation as a reliable partner for businesses wishing to use technology to propel their expansion and success.
The March 2024 quarter saw a 5.6% decline in net earnings for the IT company Coforge. In Q4 2023, net profit decreased to Rs 229.2crore from Rs 242.8 crore in the corresponding quarter in December 2023.Nonetheless, sales increased 1.5% to Rs 2358.5 crore in Q4 of the fiscal year from Rs 2323.3 crore in the previous quarter. The IT company’s board declared an interim dividend of Rs 19 per share, with a record date of May 15, 2024.
The IT company’s earnings per share decreased to Rs 36.21 in Q4 of FY24 from Rs 38.63 in Q3. The announcement of the earnings came after market hours.
In the most recent quarter, earnings before interest and tax (EBIT) decreased by 4.1% to Rs 301.1 crore from Rs 314 cr in the quarter ending in December 2023. EBIT margins decreased to 12.8% in the fourth quarter from 13.5% in the previous quarter.
Coforge’s shares fell 2.24% on Thursday, closing at Rs 4971 as opposed to the previous closing on the BSE of Rs 5100. The company’s market value dropped to Rs 30,824 crore.
Annually, operating revenue increased from Rs 80,146 crore in FY23 to Rs 91790 crore in FY24, a 14.52% increase. From Rs 745.1 crore in FY23 to Rs 835.6 crore in the most recent fiscal year, net profit increased by 12.14%.
In addition, the acquisition of Cigniti Technologies Limited was approved by the Coforge board of directors.
“FY24 was an exemplary year where the firm grew 13.3% in CC organic terms, thus becoming one of the very few firms across the industry that was able to deliver on the annual growth guidance given at the beginning of FY24,” stated Sudhir Singh, Chief Executive Officer of Coforge.We are well-positioned to deliver strong growth in FY25 with enhanced margins thanks to the $400 million TCV transaction inked in Q4, the 56% YoY increase in order intake, and the 102 basis points sequential margin improvement in Q4.
Furthermore, in a communication to bourses, the company explained the reasoning behind the acquisition, saying, “Coforge believes that acquisition of Cigniti will not only help it grow to a US$ 2 bn by FY27, but equally importantly ensure that the Coforge’s operating margins improve by 150-200 bps by FY27 itself.” Coforge has also signed a definitive agreement to purchase a 54% stake in Cigniti Technologies.
