Q4 FY18 revenues grow 4.3% sequentially
Board recommends ₹15 dividend per share
Noida | May 4th 2018, Friday: Coforge Limited (NSE: Coforge), a leading global IT solutions organization, today announced its financial results for FY17-18 resulting in revenues of Rs. 2,991.4 Crores, operating profits at Rs. 501.2 Crores and net profits at Rs.280.2 Crores.
- Revenues grow 4.3% sequentially
- Operating Profits improve by 9.4% sequentially
- Operating Margins expand by 85 bps sequentially
- Fresh Order intake of USD 145 Mn
Consolidated revenue for the quarter grew 4.3% sequentially to Rs. 788.8 Crores representing an increase of 5.9% over same period last year and operating profits improved by 9.4% sequentially to Rs.141.7 Crores representing a drop of 6.9% over same period last year. Profit after Tax improved 13.7% sequentially to Rs.86.1 Crores.
During the same period last year the company entered into a settlement with a Govt client which provided a onetime revenue of 27 Cr in the quarter. YoY Operating Performance may be best viewed excluding this one off gain in Q4 FY17. Table below provides a summary of quarter performance with and without the settlement.
|Qtr performance at a glance|
|Particulars||Qtr ended||Qtr ended||Growth||Qtr ended (without Settlement)||Growth|
|Operating Margin||20.5%||18.0%||-250 bps||17.6%||40 bps|
|Profit After Tax||100.3||86.1||-14.3%||73.9||16.3%|
BFSI vertical grew 5.4% during the quarter contributing to 44% of total revenues. Revenues in Travel & Transportation segment remained flat and represents 26% of the revenue mix. Share of other segments remained at 30%.
Revenues from EMEA expanded 9.0% sequentially during the quarter which now contributes to 32% of the revenue mix. US grew 1.0% sequentially contributing to 48% of the mix. India and APAC business now represents 10% each of the total mix.
Fresh business of USD 145 Mn was secured during the current quarter which included 2 large deals and 7 new logos. Of the fresh business secured during the quarter, USD 39 Mn was from the US, USD 73 Mn from EMEA and 33 Mn USD from ROW. Order book executable over the next 12 months expanded to USD 339 Mn.
“We continue to be very aggressive in the market and focused on driving growth. Sequential growth of 4.3% during the quarter came on the back of growth in the BFSI vertical and significant expansion in EMEA region. We are particularly pleased with the step jump in the quarterly order intake to USD 145 Mn”, said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd. “Our move towards moving the center of gravity of the leadership to the market and hiring top tier talent continues”, he added.
Digital revenues grew 9% sequentially contributing to 26% of the total revenues
342 people were added during the quarter taking headcount to 9,423 at the end of the period.
FY 18 Highlights:
- Revenues expand 6.8%
- Revenues in constant currency expand 9.7%
- Net Profits improve by 12.1%
Revenue during the year grew by 6.8% to Rs 2991 Crores. Operating profit grew by 3.5% to 501 Cr while operating margins declined by 53 bps to 16.8% for the year primarily on account of adverse impact of currency. In constant currency revenues improved by 9.7% during the year, and operating margins improved by 10 bps to 17.4%.
Profit after tax stood at Rs 280 Cr an improvement of 12.1% over the previous year.
“The year was characterized by strong deal momentum. Order intake improved steadily in each quarter with increased large deal wins and new logo additions”, said Mr. Arvind Thakur, Vice Chairman and Managing Director, Coforge Ltd. “USD 507 m of fresh business was secured during the year which included 7 large deals”, he added.
The company inducted a new CEO and many new leaders were added from Tier 1 organizations to drive growth. It is sharpening focus on its key industry segments and strengthening capabilities in emerging technologies with new growth vectors around Digital Experience, Cloud & Data. Digital business grew 27% during the year contributing to 24% of overall revenues.
“The demand landscape in the markets we serve is positive and with new leadership in place the platform is set for our next phase of growth”, said Mr. Rajendra S Pawar, Chairman, Coforge Ltd..
The board recommended a dividend of ₹15 per share
- Conferred with Aegis Graham Bell Award for “Innovation in Cloud” category and “Innovative Enterprise Solutions” category for Esri India
- Won EE Employee Engagement award in UK
- Esri India recognized as “Best Smart Cities Solution Provider in GIS” at the ET Now CSR Global Leadership Awards
- Coforge positioned as a Leader in the NelsonHall 2018 Wealth & Asset Management BPS NEAT
Coforge is a leading global IT solutions organization servicing customers across the Americas, Europe, Asia and Australia. Differentiated on the strength of its industry expertise, Coforge services clients in travel and transportation, banking and financial services, insurance, manufacturing and media verticals, offering a range of services including Application Development and Maintenance, Infrastructure Management, and Business Process Management. Focused on Digital Services, the Company is helping businesses design agile, scalable and digital operating models. Coforge adheres to major global benchmarks and standards of quality and Information Security. For further information, please visit www.coforgetech.com
Certain statements in this release are forward-looking statements. The business involves various risks, and uncertainties that could result in the actual results to differ materially from those indicated here. All forward looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.