Coforge revenue grew 40% in Q2; margin guidance raised to 16% | India Business News
Bengaluru: Coforge’s revenue rose 40.1% year on year and 10.1% sequentially in dollar terms to $652.2 million in the September quarter. Organic revenue growth in constant currency (CC) terms was 3.8% sequentially.
Operating margin expanded 134 basis points year on year to 16%, while remaining flat sequentially.
The company raised its FY27 operating margin guidance to 16% from 15.5% and expects to expand it further to 17% next year.
“The 10.1% sequential growth and 40.1% YoY growth in US dollar terms, a 3.8% sequential organic CC growth, a next twelve month signed order book of $2.38 billion, an order intake of over $1 billion and eight large deals, the most the firm has ever signed in a single quarter, have put us firmly on course to be the industry growth leader for the third year running,” said Coforge CEO Sudhir Singh.
Order intake stood at $1 billion, while the executable order book for the next 12 months rose 45.4% year on year to $2.38 billion. The company signed eight large deals during the quarter.
“We are raising our FY27 EBIT margin guidance from 15.5% to 16%. We expect to further improve our EBIT margin to 17% next year; and will be targeting to be among top three scaled IT services firms on margins while maintaining our growth momentum,” Singh said.
The Americas accounted for 63.1% of revenue, followed by Europe, the Middle East and Africa at 24.6% and the rest of the world at 12.3%. Banking, financial services and insurance contributed 25.3% of revenue, while healthcare and high-tech accounted for 17.6%.
Coforge’s headcount rose to 47,365 from 46,228 in the previous quarter. Attrition stood at 10.4% on a last-twelve-month basis, excluding its business process services workforce.
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Operating margin expanded 134 basis points year on year to 16%, while remaining flat sequentially.
The company raised its FY27 operating margin guidance to 16% from 15.5% and expects to expand it further to 17% next year.
“The 10.1% sequential growth and 40.1% YoY growth in US dollar terms, a 3.8% sequential organic CC growth, a next twelve month signed order book of $2.38 billion, an order intake of over $1 billion and eight large deals, the most the firm has ever signed in a single quarter, have put us firmly on course to be the industry growth leader for the third year running,” said Coforge CEO Sudhir Singh.
Order intake stood at $1 billion, while the executable order book for the next 12 months rose 45.4% year on year to $2.38 billion. The company signed eight large deals during the quarter.
“We are raising our FY27 EBIT margin guidance from 15.5% to 16%. We expect to further improve our EBIT margin to 17% next year; and will be targeting to be among top three scaled IT services firms on margins while maintaining our growth momentum,” Singh said.
The Americas accounted for 63.1% of revenue, followed by Europe, the Middle East and Africa at 24.6% and the rest of the world at 12.3%. Banking, financial services and insurance contributed 25.3% of revenue, while healthcare and high-tech accounted for 17.6%.
Coforge’s headcount rose to 47,365 from 46,228 in the previous quarter. Attrition stood at 10.4% on a last-twelve-month basis, excluding its business process services workforce.
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Source: timesofindia.indiatimes.com