Coforge Q1 net profit up 54.7 pc to Rs 123.6 cr

IT firm Coforge Ltd, formerly known as NIIT Technologies, on Wednesday reported a 54.7 percent jump in consolidated net profit at Rs 123.6 crore in the three months to June.

The company had posted a net profit of Rs 79.9 crore in the year-ago period, Coforge said in a regulatory filing.

Its consolidated revenue rose 38.3 percent to Rs 1,461.6 crore in the first quarter of FY'22, as against Rs 1,057 crore in the year-ago period.

This includes two months' contribution from SLK Global, an acquisition that Coforge closed in the last week of April.

On an organic basis, revenues for the quarter were at USD 185.1 million (up 32.3 percent year-on-year) and at Rs 1,354.6 crore (up 28.2 percent y-o-y).

Coverage is looking at an organic growth of at least 19 percent in constant currency terms during FY'22, higher than the 17 percent growth indicated earlier.

In the June quarter, the company's revenues (organic basis) grew 7 percent in constant currency terms sequentially, the filing said.

''Our technology services stack focused on engineering convergence for the Cloud, Product Engineering service line backed by its own Insuretech platform, Intelligent Automation service line, and Digital Integration capabilities continue to drive both differentiation and growth,'' Coforge Chief Executive Officer Sudhir Singh said.

With a signed order book, net headcount addition, and large deal size that have set a new record for the firm, Coforge is primed to deliver robust, predictable, and profitable growth, he added.

Total headcount at Coforge, after including the employees of the recently acquired SLK Global, increased to 20,491 during the quarter under review.

Total order book executable over the next 12 months has expanded 38.7 percent y-o-y to USD 645 million as of June 30, 2021.

Its order intake increased to USD 318 million on the back of three large deals secured during the quarter, including a USD 105 million contracts that will bring into play the firm's core transformation capabilities across data architecture and engineering, hybrid cloud management, digital integration, and process-led automation, it said.

The company's board has declared the first interim dividend of Rs 13 per equity share for the financial year FY2021-22. It has fixed August 10, as the record date for ascertaining the eligibility of shareholders for the payment of the interim dividend.