- 28 Jan 2022
- ICICIdirect Research
Coforge raises revenue growth guidance for FY22
COFORGE - 6877 Change: 35.40 (0.52 %)News: Coforge reported strong numbers. The company reported 5.2% QoQ CC growth. US$ revenues grew 4.2% QoQ to US$221.6 million, out of which, organic growth was 4.5% QoQ to US$199 mn while SLK Global grew 0.9% QoQ to US$22.4 mn. Rupee revenues grew 5.7% QoQ to Rs.1,569 crore. EBITDA grew 10% QoQ to Rs.302 crore while margin improved 77 bps QoQ to 18.2% aided by strong growth. Adjusted margins for the quarter ( adjusted for Esop and acquisition related costs) was at 19.5%, up 80 bps QoQ. The growth in revenues was led by BFS (up 21.5% QoQ) while manufacturing was soft as it declined 1.3% QoQ. Geographically, growth was led by Americas (up 6.1% QoQ) while Europe saw recovery from muted Q2 and was up by 7.3% QoQ. The company declared an interim dividend of Rs.13 per share. The company revised upward organic CC revenue growth guidance to 24% for FY22 ( from 22% given in Q2) and 37% CC revenue growth guidance for FY22 on overall basis ( organic+ inorganic).
Views: The company reported strong numbers for the quarter and also increased revenue guidance for the FY22. Attrition for the company remains at one of the lowest in the industry (at 16.3%) which reflects better cost as well as talent management, which augurs well in such a high demand scenario. The company is also looking to see a rebound in travel vertical ( 18% of the mix) which along with continued deal wins in other verticals is expected to drive growth, going forward.
Impact: Positive