“We are not waiting for demand like we used to, otherwise we would be waiting for a long time. Spending on technology has not decreased, but the nature of that spending and its allocation has changed. ,” Shin explained.
For the October-December quarter of the fiscal year ending March 2025, Coforge posted a 42.8% increase in sales to Rs 3,318 crore in the second quarter and a 10.3% year-on-year increase in net profit to Rs 268 crore. It was reported that the amount was Rs. Orders rose for the second consecutive quarter to $501 million after a seasonally weak quarter.
“Last quarter. It was a small quarter. And we closed four big deals. We used to close two or three deals every quarter at most. So the speed[of closing deals]is on the rise,” Singh further said. “The median as well. If you look at the past year, we’ve seen more and more talk of TCVs (total contract values) of $300 million to $400 million, so we think it’s likely that even that metric will start to increase.” he added.
Coforge’s mid-sized peer Persistent Systems also reported strong performance with profits increasing 30.3% year-on-year and sales increasing 22.6% to Rs 3,062 crore.
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In Q3 FY25, US and Noida-headquartered IT services company Coforge’s revenue grew by more than 20% in key segments of banking, financial services (BFS) and insurance, and in travel, transportation and hospitality (TTH). Increased. Singh said North America, Europe, the Middle East and Africa are driving the company’s growth, with sequential growth rates exceeding 9%. Even within service lines, cloud and infrastructure grew 42% from a year ago, and engineering was up nearly 70%.
The recent Signity acquisition contributed approximately 3.5% quarter-over-quarter growth, and non-Cignity growth, or organic growth, increased 9.4% in the quarter.
Ebitda (earnings before interest, depreciation, tax and amortization) margin declined by 170 basis points (1.70%) year-on-year and quarter-on-quarter (QoQ), dragged down by the weaker rupee and the cost of employee equity. It fell by 20bps to 15.6%. Management expects these and the integration costs associated with the Signity acquisition to impact margins in the coming quarters.
Coforge also announced its new acquisition of US-based Xceltrait, a ServiceNow specialist in financial services, for $17.85 million. The transaction is expected to close by the end of February.
Over the past three months, Coforge has added 611 employees, bringing its headcount to 33,094, an increase of 16% in real terms since April 2024.
The board of directors declared an interim dividend of Rs 19 per share with record date of January 30.
Coforge shares surged nearly 12 per cent after the early morning results announcement, closing Thursday’s trade at Rs 9,200.80 per share. Sensex closed 0.15% higher.
