Shares of Coforge Ltd surged during the trading session Wednesday after the IT solutions provider reported a strong set of performance in the September 2024 quarter (Q2FY25), which bolstered investor sentiment. The company announced numbers post market hours on Tuesday.
Coforge's net profit rose 35.6 per cent on a year-on-year (YoY) basis to Rs 255.2 crore, while the revenue was up 33 per cent YoY to Rs 3,062.3 crore in the reported quarter ended on September 30, 2024. Ebitda margins for the quarter expanded 53 basis points to 15.8 per cent for the period.
The company's order intake for the quarter stood at $516 million, marking the eleventh consecutive quarter of more than $300 million order intake. The company also added 13 new clients during the quarter. Headcount at the end of the quarter stood at 32,483, adding 5,871 on a net-net basis.
Following the strong Q2 show, shares of Coforge surged 12.30 per cent to Rs 7,632.75 on Wednesday, hitting its new 52-week high. The total market capitalization of the company stood above Rs 50,000 crore mark. The stock settled at Rs 6,795.60 in the previous trading session.
Cash flow from operations for the quarter stood at $ 10.9 million. The company board also recommended an interim dividend of Rs 19 per share. The record date for this dividend payout has been fixed at October 11, 2024.
Meanwhile, Coforge also reported a total order intake of $516 million in Q2, including three large deals, marking the eleventh consecutive quarter with order intake steady above $300 million. LTM attrition including Cigniti is 11.7 per cent, down 130 bps YoY, said the company
Post moderation in revenue growth in FY25, the Company’s organic business is expected to regain strong growth trajectory in FY26, said Sharekhan's in its recent report on Coforge. Margin uptick to be supported by lower ESOP costs, higher offshoring and lower SG&A costs, it said upgrading Coforge to Buy with revised target price of Rs 8,480.