COFORGE Q2 Results: Profit Jumps 17%, Revenue Soars 34%

Coforge Ltd. has announced its Q2 results for the quarter ended September 30, 2024. The company posted a profit after tax of ₹212 crore, up 17% from ₹181 crore in the same period last year. The company's revenue from operations grew by 34% YoY, reaching ₹3,062 crore, compared to ₹ 2,276 crore in Q2 FY24, driven by strong demand, large contract wins, and the benefits of a key acquisition.

The company reported a total order intake of $516 million in Q2, including three major deals, marking the eleventh consecutive quarter with order intake consistently exceeding $300 million. The company's earnings before interest and tax (EBIT) margin experienced a modest drop of 14 basis points, landing at 11.4%.

Quick Insights:

• Revenue: ₹3,062 crore, up by 34% YoY.
• Net Profit: ₹212 crore, increased by 17% YoY.
• Management's Take: Strong growth driven by the acquisition of Cigniti and a robust order pipeline. Outlook remains positive.
• Stock Reaction: Shares up by 10% on the NSE within the first hour of trading on Wednesday, reaching the day's high of ₹7,480.25.

Management Commentary:

Coforge CEO, Sudhir Singh said, “A 27% sequential dollar growth with the organic business having grown 6.3% sequentially, a concurrent and material expansion in EBITDA, the second consecutive quarter of significant net headcount addition, a large deals pipeline that is looking very robust and an even strengthening order executable which now is 40% higher YoY gives us confidence that the quarter and quarters to come shall see robust and sustained growth.” He highlighted that the company has fully integrated its operations with Cigniti Technologies and the resulting synergies have surpassed expectations.

Stock Market Reaction:

After the announcement of its Q2 results, Coforge shares surged by over 10% the following day on the NSE, hitting a day’s high of ₹7,480.25. The stock closed at ₹6,800.25 on the previous day. This surge can be attributed to the company’s strong financial performance.

Read Coforge Share Price Surges 11% After Strong Q2 Earnings

About Coforge & Upcoming News

Coforge (formerly NIIT Technologies) is an Indian multinational IT firm. On May 2, the company announced its proposal to acquire a 54% stake in Cigniti Technologies Ltd. at ₹1,415 per share, in a deal valued at $220 million. Coforge's board has declared a second interim dividend of ₹19 per share, with October 11 set as the record date.