Coforge Q2 Net Profit Rises 17% To Rs 212 Cr, Revenue Jumps 34%

IT company Coforge posted 17 per cent increase in net profit for the July-September quarter of FY25, reaching Rs 212 crore, up from Rs 181 crore in the same period last year. The company's revenue from operations grew 34 per cent year-on-year (YoY) to Rs 3,062 crore, compared to Rs 2,276 crore in Q2FY24, driven by sustained demand and large contract wins.

The order intake for the quarter totaled USD 516 million, making it the eleventh consecutive quarter where orders remained above the USD 300 million mark. This included three significant deals. The company's order book, executable over the next 12 months, reached USD 1.3 billion, showing a strong 40 per cent increase from the previous year. Coforge also added 13 new clients during the quarter, further expanding its portfolio.

In terms of workforce, the company’s headcount rose by 5,871 employees, bringing the total to 32,483. This increase was largely driven by the recent acquisition of Cigniti, which contributed 4,430 employees. Excluding the acquisition, Coforge’s organic growth added 1,441 employees during the quarter. The company's attrition rate improved, dropping 130 basis points YoY to 11.7 per cent. Employee benefit expenses saw a nearly 35 per cent increase, rising to Rs 1,910 crore.

Despite these gains, the company's earnings before interest and tax (EBIT) margin saw a slight decline of 14 basis points, settling at 11.4 per cent. 

Additionally, Coforge's board declared a second interim dividend of Rs 19 per share, with 11 October as the record date for shareholders.

“A 27 per cent sequential dollar growth with the organic business having grown 6.3 per cent sequentially, a concurrent and material expansion in EBITDA, the second consecutive quarter of significant net headcount addition, a large deals pipeline that is looking very robust and an even strengthening order executable which now is 40 per cent higher YoY gives us confidence that the quarter and quarters to come shall see robust and sustained growth,” said Coforge CEO Sudhir.