Coforge shares surge over 11% on Q3 results announcement

Coforge Ltd. experienced a sharp rise in its stock price following the release of its December 2024 quarter results, showcasing impressive revenue growth and strategic developments, including an acquisition and a dividend announcement.

As of 10:27 am the shares were trading 11.20% higher at ₹9,149.95 on NSE.

Key Highlights:

1. Revenue Growth:
   • Revenue in constant currency terms grew by 8.4% sequentially.
   • In US Dollar terms, revenue increased by 7.5% QoQ to $397 million.
   • Revenue in rupee terms rose by 8.4% QoQ to ₹3,318.2 crore.
2. Profit and Margins:
   • EBIT stood at ₹316.2 crore, up from ₹287.6 crore in the previous quarter.
   • EBIT margin improved slightly to 9.5% from 9.4%.
   • Net profit rose by 6.6% QoQ to ₹215.5 crore.
3. Order Intake and Business Updates:
   • This marked Coforge’s second consecutive quarter with order intake exceeding $500 million.
   • The newly acquired Cigniti business showed 3.5% revenue growth in constant currency terms, with EBITDA margins increasing to 17.3% from 16.2% in the prior quarter.
4. Acquisition of Xceltrait Inc.:
   • Coforge signed an agreement to acquire a 100% stake in Xceltrait Inc., a US-based company specializing in ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules, for $17.85 million.
5. Dividend Announcement:
   • The board declared an interim dividend of ₹19 per share, with the record date set as January 30, 2025.
6. Employee Metrics:
   • The company reported an attrition rate of 11.9% for the December quarter.

Stock Movement:

Coforge’s stock surged over 11%, reflecting strong investor confidence in the company’s sustained growth trajectory. CEO Sudhir Singh highlighted the company’s robust deal pipeline, improved margins, and significant order book growth as key contributors to the positive outlook.