Coforge shares surge 9% on dividend, Q3 results and acquisition; key details

Shares of Coforge Ltd soared 8 per cent in Thursday's trade after the IT major reported a 10.3 per cent rise in net profit for the December quarter on 42.8 per cent YoY rise in sales at Rs 3,318.2 crore. The stock also gained as the company board declared third interim dividend of Rs 19 per share and set January 30 as the record date for the purpose of ascertaining the eligibility of shareholders for payment of the dividend.

Coforge shares climbed 9 per cent to hit a high of Rs 8,962 on BSE. The scrip has gained 45 per cent in the past one year.

Add to that the company said its wholly owned subsidiary has agreed to enter into a stock purchase agreement with Xceltrait Inc and its stockholders to acquire all of the outstanding shares of capital stock of Xceltrait Inc for $ 17.85 million.

As far as the Q3 results are concerned, Coforge said its revenue was up 8.4 per cent QoQ in constant currency terms. In dollar terms revenue stood at $ 397.1 million, up 7.5 per cent QoQ and 40.8 per cent YoY in dollar terms.

Ebitda was up 29.3 per cent YoY and 7.2 per cent QoQ for the quarter. Order executable for the quarter stood at $1.37 billion, up 40.1 per cent YoY.

“A 8.4 per cent sequential CC growth, a 40.3 per cent CC YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a Cigniti business that has already touched an Ebitda margin of 17.3 per cent, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40 per cent higher YoY gives us confidence that the coming year shall once again see robust and sustained growth.” said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd.

The IT firm said its order intake stood  at $ 501 million. This was the second consecutive quarter of $ 500-plus million order intake. Coforge won four large deals across North America and ASEAN. Its headcount stood at 33,094; net addition of 611 sequentially. 

Headcount has increased 16 per cent organically since the beginning of the year. The Q3 growth was broad-based across Americas (69.2 per cent), EMEA (20.5 per cent) and RoW (3.3 per cent) YoY. The Cigniti business delivered 3.5 per cent CC QoQ growth. Ebitda margin for the business improved to 17.3 per cent, up from 11 per cent in Q4FY24.