- 20 Oct 2022
- ICICIdirect Research
Coforge reports attrition down further by 160 bps QoQ to 16 point 4 percent maintains revenueCOFORGE - 3660 Change: 62.30 (1.73 %)
· US$ revenues grew 3.4% QoQ to USD246.9.7 million ( 6.2% QoQ growth in CC) while rupee revenues grew by 7.1% QoQ to Rs 1,959 crore
· The fresh order intake for Q2 stands at US$304 mn , up 7% on YoY.
· EBITDA grew 18% QoQ to Rs 344.9 crore while margin was up 165bps QoQ to 17.6%, was on expected lines.
· PAT came in at Rs 201 crore (our estimate of Rs 182 crore) also aided further by lower tax
The company’s revenue performance while margins were largely in line. The deal win continue to be robust as it is third consecutive quarter of US$300mn+ TCV wins which is expected to provide revenue momentum for revenue growth ahead. Attrition moderation is positive and it, along with continued focus on offshoring, utilisation improvement, pyramid optimisation is expected to provide support margins in the medium to long term. We remain bullish on the prospects of the company.