Q1FY22 Result Update - Coforge Ltd - ICICI Direct

Coforge reported robust Q1FY22 results on the revenue front.

- Dollar revenues increased 16.0% QoQ of which organic was 7.6% QoQ

- EBITDA margin declined 243 bps QoQ led by wage hike

- Revised organic guidance upwards to 19.0% YoY (in CC terms) in FY22E

Key triggers for future price performance

- Increase in deal size. Signed a US$105 million BFS deal (for four years), Insurance US$20 million (for three year), healthy order book to drive growth

- Bottoming out of travel vertical (in US), preferred partnership with Fortune 500 insurance & Tier 1 banking companies, recent acquisition and aggressive hiring to drive 26.5%CAGR over FY21-23E

- A 253 bps improvement in margins expected in FY21-23E due to offshoring, higher margins in acquired company, reversal of travel discount and growth

For details, click on the link below: Link to the report

Shares of Coforge Ltd. was last trading in BSE at Rs. 5086.25 as compared to the previous close of Rs. 5177.35. The total number of shares traded during the day was 23608 in over 4182 trades.

The stock hit an intraday high of Rs. 5225 and intraday low of 5034.9. The net turnover during the day was Rs. 121004298.

Source : Equity Bulls

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