Shares of Coforge Ltd surged nearly 8% in early trade on October 23 following a strong Q2 earnings report that energized investor sentiment. Here’s the breakdown of their stellar performance:
Q2 Key Highlights:
- Net Profit: Grew by 9% quarter-on-quarter, reaching ₹255.20 crore (up from ₹234.60 crore in Q1).
- Revenue: Witnessed a massive 27.5% jump, hitting ₹3,062 crore in Q2, compared to ₹2,401 crore in the previous quarter.
- Order Intake: Total order intake stood at $516 million, including three large deals. This marks the 11th consecutive quarter with an order intake above $300 million. 💼
📊 Stock Performance:
- Past 3 Months: Coforge has delivered impressive 18.5% returns.
- Current Price (as of October 23): Shares were trading at ₹7,295.95 on the NSE. 💹
🌐 Strong Order Book:
Coforge’s order book, executable over the next 12 months, touched $1.3 billion, reflecting a 40% year-on-year growth. The company also added 13 new clients during the quarter, enhancing future growth prospects. ✨
🛠️ EBIT Margin:
- EBIT Margin declined by 190 basis points sequentially, primarily due to the acquisition of Cigniti Technologies. Adjusting for this, the organic EBIT margin stood at 12.2%, slightly lower than 13.6% in Q1.
🌟 Positive Outlook:
Coforge’s management is optimistic about the upcoming quarters, projecting sustained growth due to their robust pipeline of deals and solid financial momentum. CEO Sudhir Singh highlighted strong dollar growth (+27% sequentially), organic business expansion, and further EBITDA improvements.
With a solid order book and strong client additions, Coforge is set to continue its growth streak in the near future! 🌱📈