- 21 Jul 2023
- ICICI Securities
HEALTHY REVENUE PERFORMANCE; MAINTAINS FY24 OUTLOOK
COFORGE - 8322 Change: 59.50 (0.72 %)News: Revenue grew 2.8% QoQ in CC terms at US$ 271.8 mn. Geography wise, the growth was led by US region (49.7% mix) which grew by 5.8% QoQ and EMEA (38.6% mix) which reported growth of 0.2% QoQ. Vertical wise growth was led by BFSI wherein Banking (31% mix) and Insurance (23% mix) grew by 3.1% and 4.7% QoQ respectively, while Travel vertical (19% mix) grew by 1.2% QoQ. Adjusted EBITDA margins (adjusted for ESOP costs) were down 360bps QoQ to 16%, owing to wage hike and variable payout impact. Fresh order intake was up 69% YoY, while it was up 76%% QoQ to US$531mn. Reported PAT came in at Rs 229, down 22.9% QoQ due to lower EBITDA.
Views: The company maintained its guidance of 13-16% CC revenue growth in FY24. In Our view, FY24 guidance is quite strong vs some of its large peers and some of the building blocks of the same are i) it is not seeing any project cancellation ii) They are looking at stronger growth in BFSI vertical growth of mid-teen in FY24, and iii) Strong Order pipeline.
Impact: Positive