 "Coforge Q2 results: Net profit declines 10% to Rs 181 cr, revenue up 16%")
IT company Coforge on Thursday posted a 10 per cent year-on-year decline in consolidated net profit for the September quarter at Rs 181 crore, partly on account of a one-time increase in ESOP costs.
The IT solutions company reaffirmed its 2023-24 revenue growth guidance of 13-16 per cent.
Consolidated Profit After Tax (PAT) for the second quarter of the current fiscal was at Rs 181 crore, 10 per cent lower than the year-ago period. However, the PAT for the quarter was 9.5 per cent higher when compared sequentially.
The net profit (attributable to owners) was Rs 201.1 crore in the year-ago period.
Revenue from operations came in at Rs 2,276.2 crore in the quarter under review, rising over 16 per cent from Rs 1,959.4 crore in the corresponding period of the previous fiscal.
The company attributed the 10 per cent year-on-year drop in net profit to a one-time increase in ESOP (employee stock option plan) costs in the quarter.
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Coforge, in a statement, said it gave all increments on time, very high variable payouts for last year's performance, and the full annual bonus in the first quarter.
"Revenue for the quarter was Rs 2,276.2 crore and $ 278.1 million... Revenue increased quarter-on-quarter by 2.3 per cent in constant currency, 2.3 per cent in $ and 2.5 per cent in INR terms," Coforge's Q2 earnings release said.
Order intake was $ 313 million, the seventh consecutive quarter of over $ 300 million order intake, according to the company.
The total order book executable over the next 12 months stood at $ 935 million, up 16.6 per cent year-on-year.
"At the end of the first half, the firm has grown 16.2 per cent in constant currency terms despite a very challenging market context. This reflects once again the exceptional executional intensity and commitment of all members of Team Coforge," Sudhir Singh, Chief Executive Officer of the company, said.
The board has recommended an interim dividend of Rs 19 per share, and the record date for this payout is November 2, 2023.
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