Shares of Coforge Ltd declined 11 per cent to hit an intraday low of Rs 4,823.60 on the BSE after the company’s Q2 earnings missed the Street’s expectations.
The IT major reported a net profit of Rs 146.7 crore for July-September quarter, recording a 18.7 per cent rise on a quarter-on-quarter basis. The company’s revenue grew 7.4 per cent to Rs 1,569.4 crore from Rs 1,461.6 crore in June quarter. Dollar revenue was up 6.5 per cent to $212.8 million as against $199.7 million in the preceding quarter.
The stock ended 6.58 per cent lower at Rs 5,063.15 against the previous close of Rs 5,419.70 on the BSE. With a market capitalisation of more than Rs 30,000 crore, the shares stand higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.
The large-cap stock has gained 113 per cent in the last one year and has risen 87 per cent since the beginning of this year.
“Total order book executable over the next twelve months has expanded 40.6 per cent year-on-year to $688 million as on 30th September 2021. Order intake during the quarter was $285 million, on the back of three large deals secured during the quarter out of which two were greater than $50 million TCV each,” the company said.
“Our investments in product engineering, cloud, data, automation and integration capabilities continue to power our path to being a $1 billion+ firm next year. This is a landmark year for the firm as we anticipate that we shall grow revenues by at least 35 per cent and our adjusted EBITDA by at least 40 per cent over the previous year,” Coforge Ltd CEO Sudhir Singh said.
“Our ability to significantly improve margins in the context of a supply-constrained and escalating cost while simultaneously driving exceptional growth is a testament to the execution capabilities of Team Coforge”, Singh added.
In view of the sustained deal wins and incremental business from its customer base, the company said that it is now planning for a growth (excluding SLK Global contribution) of at least 22 per cent in constant currency terms during FY22, which is higher than the 19 per cent growth indicated earlier.
“This translates to at least 35 per cent of consolidated (including SLK Global) growth in constant currency terms for the firm in FY22. The firm continues to target an adjusted EBITDA margin of 19 per cent for the year,” the company said.
Coforge’s board also recommended an interim dividend of Rs 13 per share. The record date for this payout will be November 8, 2021.