Coforge crosses US$ 1 bn revenue milestone; company to gift an Apple iPad to each of it’s 21,000+ employee

Coforge announced its audited financial results for the quarter and year ended March 31, 2023. The Company reported a strong performance exceeding its full-year revenue growth guidance and expanding profitability in the last quarter.

FY23 – Financial Highlights

• Revenue at US$ 1,002 million and INR 80,146 million

o Up 22.4% in CC terms, up 24.6% in INR and 15.6% in US$ terms

• Gross Margin expanded by 55 bps YoY to 32.5%
• Adj. EBITDA margin at 18.3% for the year

o Adj. EBITDA at INR 14,649 million, up 21.5% YoY

• PAT for the year, excluding one off expenses, at INR 8,117 million, up 22.7% YoY

Q4 FY23 – Financial Highlights

• Revenue for the quarter was US$ 264.4 million and INR 21,700 million

o Up 5.6% in INR, 5.0% in USD and 4.7% in cc terms QoQ

o Up 24.5% in INR terms and 13.8% in US$ terms YoY

• Adj. EBITDA margin for the quarter at 19.6%, sequentially up by 109 bps
• PAT for the quarter, excluding one off expenses, at INR 2,327 million, increased 12.1% YoY in INR terms

Q4 FY23 – Business Highlights

• Total order book executable over the next 12 months stands at US$ 869 million, up 20.7% YoY
• Order intake was at US$ 301 million while 10 new client logos were added during the quarter
• Year ended headcount at 23,224. Net addition of 719 people during the quarter
• LTM Attrition (excl. BPS) stood at 14.1%, improved 172 bps QoQ and 362 bps YoY. Continues to be amongst the lowest in the industry
• Coforge wins Duck Creek Technologies 2022 Innovation Award for OnDemand Enablement Tooling
• Coforge received the Bronze award by Economic Times Human Capital Awards #ETHCA for Excellence in Employee Retention Strategy

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• Coforge enters strategic partnership with Denodo, to offer data modernization for banks and financial services organizations
• Coforge launches Quasar eBOL for the logistics sector. It’s an edge compute/cloud-based platform solution which would be used for extraction and process automation of unstructured paper Bill of Lading and help in improving asset utilization and reducing costs

“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 in to FY24 sets us up well to deliver robust growth.” said Sudhir Singh, Chief Executive Officer, Coforge Ltd.

Talking about the digital initiatives in Coforge, Gautam Samantha, Global leader, Banking and Financial Services, Coforge said, “the overall digital transofrmation journey which started which started with the pandemic has actually gained momemtum despite all the headwind, it is irreversible. In the travel sector, Coforge created a digital queing system which is designed for airports. It is digital interface which can guide passengers to intreact with the concerend people who can help passenegers. Also, in the BFSI sector there is significant emphasis being given in the sphere of digital automation, risks and compliances. And as we are not invested into legacy area where one rquires a large body of low end capabilities to do the maintennance work or manual testing, we are in a very strong position to leverage the growth in the financial services business and for all other domains where we are engaged in.”

For FY24, the firm issued an annual revenue growth guidance of 13%-16% in constant currency terms, expects a gross margin increase of about 50 bps and adjusted EBITDA margin to be at similar levels as FY23. The Board has recommended an interim dividend of INR 19 per share, and the record date for this payout will be 9th May 2023.