The shares of the digital services provider gained up to 4 percent after the company maintained its margin guidance for the financial year 2024-25, reported in the first quarter of FY25.
With a market capitalization of Rs 41,120.05 crore, the shares of Coforge Ltd were trading in green at Rs 6,62.95 per share, increasing around 1.54 percent as compared to the previous closing price of Rs 6,071.55 apiece.
Reason for rise:-
The share of the company has seen positive movement despite Coforge Ltd revenue zooming by 2.5 percent on a quarter-on-quarter basis from Rs. 2,368.4 crores in Q4FY24 to Rs. 2,426.2 crores in Q1FY25. Further, revenue magnified by 9 percent year on year from Rs 2,237 crores in Q1FY24 to Rs. 2,426.2 crores in Q1FY25.
Coforge Ltd’s net profit decreased by 40 percent on a quarter-on-quarter basis from Rs. 229 crores in Q4FY24 to Rs 139 in Q1FY25. Further, on a year-on-year basis also net profit declined by 20 percent from Rs. 175 crores in Q1FY24 to Rs. 139 crores in Q1FY25.
Moreover, Coforge’s board has declared an interim dividend of Rs 19 per equity share for FY 2024-25. The corporation has set August 2 as the record date for determining shareholders’ eligibility for the proposed dividend.
Coforge Chief Executive Officer Sudhir Singh said that he believes by the end of the first half of the year, the company will be operating at a 50 basis points higher margin than the first half of last year and that will set it up firmly on the path to meeting its guidance of a 50 bps adjusted EBITDA expansion in this fiscal over last year, CNBC reported.
Recent deals and acquisitions:-
During Q4FY24, the company signed two large deals which include a $400 million TCV ten-year deal in the BFS vertical and a $55 million three-year transformation deal in the insurance vertical with a new client.
In May 2024, the company inked a formal SPA to acquire a 54% share in Cigniti Technologies Ltd. for about Rs. 2,000 Cr. The company estimates that this purchase would enable it to develop into a $2 billion company by FY27 and establish three new scaled-up verticals: retail, technology, and healthcare.
Company Snapshot:-
Coforge Limited is an India-based information technology (IT) solutions provider. It specializes in application development and maintenance, managed services, cloud computing, and business process outsourcing. The Company offers computer programming consulting and related services.
Written by:- Abhishek Singh
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