Coforge reports an industry-leading performance in Q2 FY'21

ANI | Updated: Oct 23, 2020 11:58 IST

Noida (Uttar Pradesh) [India] October 23 (ANI/PRNewswire): Industry-leading sequential growth:
* 10.7 per cent quarter-on-quarter growth in dollar terms
* 8.1 per cent quarter-on-quarter growth in constant currency (CC) terms
* 9.1 per cent quarter-on-quarter growth in rupee terms
Strong order booking and deal signings:
* Secures two large deals, order intake of USD 201 million during the quarter
* Order book executable over the next 12 months up 21 per cent YonY to USD 489 million
Robust operating metrics and significant headcount addition:
* EBITDA margin (before RSU cost) expands 174 bps QonQ to 18.8 per cent
* Attrition at 10.5 per cent -- among the best in industry
* Total headcount at 11,162 -- implying a net addition of 564 employees QonQ
Coforge Limited (NSE: COFORGE), a leading global IT solutions organization that was erstwhile known as NIIT Technologies Ltd announced an industry-leading growth performance for the quarter ended September 30, 2020 (Q2FY'21).
The company has reported consolidated revenue of Rs 11,537 million during Q2FY'21, representing a growth of 11.1 per cent over the same quarter previous year. On a sequential basis, consolidated revenue grew 9.1 per cent over the preceding quarter in rupee terms, 8.1 per cent in constant currency terms, and 10.7 per cent in dollar terms.

EBITDA (before RSU costs i.e. cost of ESOPs) for the quarter under review increased 14.4 per cent YonY and was up 20.2 per cent QonQ to Rs 2,172 million, translating into an EBITDA margin of 18.8 per cent for Q2FY'21. PAT was up 51.1 per cent QonQ to Rs 1,207 million.
This strong financial and operating performance has been delivered by Coforge despite having one of the highest exposures within its peer set to the Travel vertical, which has encountered heavy headwinds due to the COVID-19 pandemic.
"The 8.1 percent sequential growth in constant currency terms came on the back of growth across all verticals, all geos and all account-sized based cuts for the firm. The sharp sequential increase in EBITDA, in order intake, and in order executable is a testament to the tenacity of and the consistent execution delivered by Team Coforge despite the pandemic induced headwinds. As organizations pivot towards data, cloud and AI-led transformation space for innovative and agile service providers in the broader tech services sandbox continues to expand," said Sudhir Singh, Chief Executive Officer, Coforge Ltd.
The insurance vertical expanded 13.6 per cent QonQ contributing to 34 per cent of the quarter's total revenue. The BFS business grew 8.5 per cent sequentially and contributed to 17 per cent of total revenue.
The travel vertical recorded a quarter-on-quarter growth of 6.0 per cent and now contributes to 19 per cent of total Q2 revenue.
Other segments collectively grew 6.7 per cent quarter-on-quarter and they now represent 30 per cent of the overall revenue.
Among geographies, Americas grew by 11.9 per cent sequentially contributing 48 per cent to the revenue mix, EMEA grew by 7.3 per cent contributing 36 per cent to the revenue mix, and the rest of the world grew by 5.6 per cent contributing 16 per cent to the revenue mix.
The order intake during the quarter was exceptionally strong, with two large deal wins. The fresh business of USD 201 million was secured during the quarter under review, which is higher on both QonQ and YonY basis.
A total of 12 new clients were added during the quarter. On the back of this continued deal signing momentum, the order book executable over the next twelve months increased to USD 489 million, representing a growth of 21 per cent YonY.
The firm also saw its attrition improve further to 10.5 per cent, among the best in the industry. Total employee strength increased to 11,162 at the end of the quarter, an increase of 564 people QonQ. The total headcount is now at a slightly higher level than at the end of Q4FY'20 when the Covid-19 pandemic took effect.
* Coforge positioned as a 'strong performer' in The Forrester Wave™: Digital Process Automation Service Providers, Q3 2020
* Coforge ranked #3 amongst Top 20 Travel, Hospitality, and Logistics Service Providers in HFS Top 10 Report, 2020
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