 "IT firm Coforge FY23 revenue up 24.6% at Rs 8,014.6 cr, profit grows 4.6%")
Coforge has reported a net profit of Rs 232.7 crore in Q4 FY23, a 12.1 per cent increase from the same period last year. The IT solutions firm said its constant currency revenues crossed $1 billion, amid a “very uncertain” macroeconomic environment.
Revenue in rupee terms grew 24.5 per cent year-on-year (YoY) to Rs 2,170 crore in the quarter ended on March 31, from Rs 2,055.8 a year ago. The company beat Bloomberg’s revenue estimate for the quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) Margin dipped 80 basis points YoY to 19.6 per cent in the fourth quarter.
For the full year FY23, the Noida-based firm has reported a net profit of Rs 693.8 crore, up 4.62 per cent from Rs 661.7 crore last year. Revenue grew 24.6 per cent to Rs 8,014.6 crore from 6,432 crore in FY22.
Coforge spent around Rs 132.6 crore in Q4 FY23 on ‘one-off’ items. This includes expenses worth Rs 52.3 crore spent on the American depositary receipt (ADR) listing process and an amount of Rs 80.3 crore spent on gifting Apple iPads to some 21,000 employees as part of celebration on the achievement of $1 billion in CC revenue in FY23.
Total order book executable over the next 12 months stands at $869 million, up 20.7 per cent YoY. However, fresh order intake was at $301 million down from $345 million worth new orders in the previous quarter. Coforge has added 10 new clients to its portfolio during the quarter.
For FY24, the firm issued an annual revenue growth guidance of 13-16 per cent in constant currency terms, expecting a gross margin increase of about 50 bps and adjusted EBITDA margin to be at similar levels as FY23.
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“We believe that our performance during the quarter was marked by two key achievements. The first was a quarterly sequential US$ growth of 5.0%. The second major landmark has been the firm crossing the US$ one billion revenue mark. Our performance heading into FY24 sets us up well to deliver robust growth.” said Sudhir Singh, chief executive officer of Coforge.
The company’s board recommended an interim dividend of Rs 19 per share; the record date for this payout will be May 9, 2023.