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Shares of Coforge surged 12% to a day’s high of Rs 9,198.2 on the BSE on January 23; What investors need to know
Coforge shares jump
Shares of Coforge surged 12% to a day’s high of Rs 9,198.2 on the BSE on January 23, following the company’s announcement of its Q3 FY25 results. The company reported a 10.3% YoY increase in its adjusted profit after tax (PAT), reaching Rs 268 crore.
In addition to the positive earnings, Coforge declared a dividend and unveiled another acquisition, though there was a slight miss on the margin front.
Revenue from operations rose by 42.8% YoY to Rs 3,318.2 crore, up from Rs 2,323.3 crore in Q3 FY24. The revenue figure of Rs 3,318.2 crore (US$ 397.1 million) also represents an 8.4% sequential increase in constant currency terms. EBITDA for the quarter stood at Rs 519 crore, marking a 29.3% YoY growth.
Coforge delivered a strong performance with a $501 million order intake, surpassing the US$500 million mark for the second consecutive quarter. The company secured four large deals across North America and ASEAN.
Additionally, Coforge announced that its wholly-owned subsidiary, Coforge Inc., will acquire US-based Xceltrait Inc. for approximately $17.85 million.
The Cigniti business also showed strong growth, achieving a 3.5% constant currency QoQ increase and a notable improvement in EBITDA margin to 17.3%, up from 11% in Q4 FY24.
Coforge’s IT attrition rate (LTM) stood at 11.9%, one of the lowest in the IT services sector.
Despite the sharp rise during the day, Coforge’s share price closed flat at Rs 8,225.10 on the BSE on Wednesday.
