Coforge Q1 Results: Profit Dips 40.5%, Revenue Up 1.8%

Mid-tier IT firm Coforge Ltd. reported a 40.5% dip in profit in the first quarter of fiscal 2025. The company reported a net profit of Rs 133.2 crore in the quarter-ended June due to the one-off effect of the Cigniti Technologies acquisition. This compares with the Rs 226.1-crore consensus estimate of analysts tracked by Bloomberg.

Revenue from operations stood at Rs 2,400.8 crore, a 1.8% rise on a quarter-on-quarter basis, and a 8.1% rise on a year-on-year basis. Profit on a YoY basis dipped 19.4%. Margin, too, declined 110 basis points sequentially to 17.9% due to acquisition-related expenses. 

Coforge Q1 Results: Key Highlights (QoQ)

• Revenue up 1.8% to Rs 2,400.8 crore (Estimate: Rs 2,418.56 crore).

• Net profit declines 40.5% to Rs 133.2 crore (Estimate: Rs 226.1 crore).

• Margin contracted 110 basis points to 17.9% (Estimate: 15.3%).

“FY25 has started on a strong note, with a healthy increase in Ebitda margin by 210 bps over last year, and OCF (operating cash flow) of $23.2 million. A very strong executable order book, backed by the highest-ever headcount addition, sets us up for continued growth ahead,” said Sudhir Singh, chief executive officer at Coforge. 

In Q1, the order intake recorded was at $314 million, with 10 new clients being added during the quarter. In FY24, Coforge’s fresh order intake more than doubled on a year-on-year basis to $774 million, with a $400 million deal signed in Q4. 

Headcount at the end of the quarter stood at 26,612, with net addition of 1,886 sequentially. LTM attrition rate was at 11.4%, down 192 bps YoY, in Q1. 

The board has also recommended an interim dividend of Rs 19 per share, and the record date for the payout will be Aug. 2.

Shares of Coforge were trading 2.26% higher at Rs 6,208.85 apiece, as against a 0.17% decline in the benchmark BSE Sensex.