Coforge delivers robust 13.3percent CC organic growth in FY24; signs a TCV $400 Mn large deal in Q4FY24

Gurugram, May 03rd, 2024: Coforge Limited (NSE: COFORGE), a leading global IT solutions organization, today announced its audited financial results for the quarter and year ended March 31, 2024. The Company reported a strong performance despite the slowdown in the Global IT services industry.

FY24 – Financial Highlights

• Revenue at US$ 1,119 million and INR 91,790 million
  • Up 13.3% in CC terms, up 14.5% in INR and 11.7% in US$ terms
• Adj. EBITDA margin at 17.6% for the year
  • Adj. EBITDA at INR 16,185 million, up 10.5% YoY
• PAT for the year at INR 8,080 million, up 16.5% YoY.

Q4 FY24 – Financial Highlights

• Revenue for the quarter was US$ 286.8 million and INR 23,585 million
  • Up 1.5% in INR, 1.7% in USD and 1.9% in cc terms QoQ.
  • Up 8.7% in INR terms, 8.5% in US$ terms and 9.0% in CC terms on a YoY basis.
• Adj. EBITDA margin for the quarter at 19.0%, sequentially up by 102 bps
• PAT for the quarter at INR 2,237 million, was up 94.8% YoY in INR terms.

“FY24 was an exemplary year where the firm grew 13.3% in CC organic terms, thus becoming one of the very few firms across the industry that was able to deliver on the annual growth guidance given at the beginning of FY24. The $400 Mn TCV deal signed in Q4, the 56% YoY increase in order intake and the 102-bps sequential margin improvement in Q4 set us up strongly to deliver robust growth in FY25 with expanded margins.” said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd.

The Board has recommended an interim dividend of INR 19 per share and the record date for this will be 15th May 2024.

Q4 FY24 – Business Highlights

• Total order book executable over the next 12 months stands at US$ 1,019 million, up 17.3% YoY.
• Order intake was at US$ 774 million while 8 new client logos were added during the quarter.
• Total order intake during the year stood at US$ 1,973 M, up 56% YoY.
• Headcount at 24,726.
• LTM Attrition (excl. BPS) stood at 11.5%, improved 60 bps QoQ and 258 bps YoY.

Acquisition of Cigniti Technologies-

• Coforge has signed a definitive agreement to take over Cigniti Technologies Limited.
• Coforge believes that acquisition of Cigniti will not only help it grow to a US$ 2 bn by FY27, but equally importantly ensure that the Coforge’s operating margins improve by 150-200 bps by FY27 itself.

The Rationale of the acquisition is as follows–

• The acquisition will create three new scaled up verticals – Retail, Technology and Healthcare.
• Help Coforge realize its objective of scaling up its presence across South-West, Mid-West and Western US markets.
• Help Coforge address the significant opportunities that the proliferation of AI is creating for specialized Assurance Services

Q4FY24 – Awards, Recognitions and Partnerships

Alliances, partnerships, and solutions offerings

• Coforge was honored with the ServiceNow 2024 Emerging Industry Partner of the Year – Worldwide award
• Coforge was recognized with the “Market Maker Partner of the Year” award at the Pega ANZ Partner Summit 2024
• Coforge launched Orion- A Gen AI-based autonomous self-service solution to enhance customer experience across multiple industries.

Analysts Accolades

• HFS recognized Coforge as an Enterprise Innovator in the Best Service Providers for Asset and Wealth Management, 2024 Horizon assessment.
• Avasant positioned Coforge as an Enterprise Innovator in the Airlines and Airports Digital Services 2024 RadarView.
• NelsonHall positioned Coforge as a

• 1. • Leader in the Salesforce Services NEAT – in the MuleSoft Services
     • High-Achiever’ in the Overall and Marketing Cloud Services segments.
     • Major Player’ in the Experience Cloud Services segment.

• Everest recognized Coforge as a Leader in the Pega Services PEAK Matrix® Assessment 2024
• Avasant positioned Coforge as a Disruptor in the Intelligent Automation Services 2024 RadarView.
• Forrester recognized Coforge in the Automation Fabric Services Landscape, Q1 2024
• HFS recognized Coforge as a Disruptor in the HFS Horizons Assuring the Generative Enterprise™, 2024
• Forrester recognized Coforge in Continuous Automation And Testing Services Landscape, Q1 2024
• Everest recognized Coforge as a Major Contender in the Financial Crime and Compliance (FCC) Operations Services PEAK Matrix® Assessment 2024.

Awards and Recognitions

• Coforge won the Silver at the Economic Times Human Capital Awards (ETHCA) 2024 for Excellence in Creating a Culture of Continuous Learning and Upskilling
• The Coforge BPS Learning & Organizational Development (L&OD) team won the Meritorious Award for their exemplary use of Kaizen principles at the 37th National Convention on Quality Concepts ceremony held by Quality Circle Forum of India.
• Coforge won the first prize in the corporate category in the Noida Flower Show Garden Competition 2024 organized by The Floriculture Society of Noida for the sixth time in a row.

CSR milestone

• Coforge inaugurated The Coforge Public Library in Noida. An open-for-all, fully digitized, one-of-its-kind public library in Sector 59, Noida, the Coforge Public Library is spread over an area of 12000 sq ft. and boasts a collection of over 10,000 books, 3.5 crore titles available online, and 200 books in Braille.

Disclaimer: This press release serves for informational purposes only and does not constitute professional advice. Any reliance on the information provided is at the reader’s discretion.