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IT Consulting & Software company Coforge announced Q3FY24 results:

Financial Summary:

• Revenue: Coforge reported quarterly revenue of Rs 23,233 million and $282 million, marking a sequential growth of 1.8% in constant currency and 1.4% in USD. Year-on-year (YoY) growth was posted at 12.0% in constant currency and 13.0% in INR terms.
• Adjusted EBITDA: The adjusted EBITDA for the quarter was Rs 4,170 million (or $50.6 million), increasing by 9.8% YoY in INR terms and 8.9% in USD terms. Sequentially, it improved by 39 basis points.
• Profit Aft er Tax (PAT): PAT showed a strong increase of 31.5% quarter-on-quarter (QoQ) to Rs 2,380 million (or $28.9 million). In terms of earnings per share (EPS), this quarter's figure is Rs 38.6.

Business Highlights:

• Order Intake: The company secured a fresh order intake totaling $354 million.
• Order Book: The executable order book for the next 12 months stands at $974 million, reflecting a 15.8% increase YoY.
• New Clients: Coforge added 7 new clients in this quarter.
• Attrition Rate: The attrition rate settled at 12.1%, one of the lowest in the industry.

Vertical & Service Offering Mix:

• Banking & Financial Services: Represents 32.2% of revenue.
• Insurance: Accounts for 22.0% of revenue.
• Travel, Transportation & Hospitality (TTH): Contributes 17.8% of revenue.
• Location Mix: Onsite work makes up 47.8%, while offshore services constitute 52.2% of IT revenue.

Geographic Revenue Distribution:

• Americas: Generates 46.6% of revenue.
• EMEA (Europe, Middle East, and Africa): Contributes 40.0% of revenue.
• Rest of World: Accounts for 13.4% of revenue.

Client Concentration:

• Top 5 Clients: Revenue from the top 5 clients decreased year-over-year.
• Top 10 Clients: Revenue concentration from the top 10 clients also decreased, indicating a diversification in the revenue base.

Employee Metrics:

• Headcount: Global headcount increased to 24,607 by the end of December 2023.
• Utilization Rate: Including trainees, the utilization rate is reported at 94%.

Operational Metrics:

• Days Sales Outstanding (DSO): Stood at 63 days for the quarter, showing improvement over the previous year's figure of 73.
• Currency Rates: The closing rate for INR/USD was 83.19, with the average rate being 83.26.

Awards & Recognitions:

• Received accolades in categories like Digital Banking Services, P&C Insurance, and Market Leadership in Travel and Hospitality.
• Recognized by HFS Research, Everest Group, and ISG in various capacities.
• Winner in three categories at the 6th CHRO Vision & Innovation Awards 2023.
• Recognized among India's Best Workplaces in IT & IT-BPM for the second year running.

Partnerships & Initiatives:

• Launched Quasar Responsible AI and entered strategic partnerships to strengthen their service offerings like their Enforcement SaaS Platform and Insurance Lifecycle Management Solutions.
• Coforge transformed a waste dumping ground into a biodiversity park in Noida.

“Coforge this year is likely to be one of the very few firms that gave clear growth guidance at the beginning of the year and shall deliver within that revenue guidance range. Our ability to deliver on an annual revenue guidance commitment in such a tough year and the fact that at the end of Q3 our YTD organic cc revenue growth is 14.7 percent is a testament to the tenacity of Team Coforge and our ability to execute against plans” said Sudhir Singh, Chief Executive Officer, Coforge.

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