IT firm Coforge Ltd, formerly known as NIIT Technologies, on Thursday reported a 17 percent rise in consolidated net profit at Rs 133 crore in the three months ended March 2021. The company had posted a net profit of Rs 113.6 crore in the year-ago period, Coforge said in a regulatory filing.

The dollar revenue grew at 7.2 percent while constant currency revenue came in at 5.1 percent.

Sudhir Singh, CEO of the company said that exit momentum, deal pipeline and existing order book gives them the confidence to achieve the FY22 guidance.

“The outlook that we have shared is 17 percent at least growth for next year and that is essentially a function of the fact that the exit ramp at 7.1 percent which is where Q4 came in, creates significant momentum going in. On the deal momentum side there is clear buoyancy that is getting reflected and at this point of time the order executable which is the 12 month order executable book that we already have locked in also gives significant support,” he said in an interview to CNBC-TV18.

He further added that the company needs only 3 percent revenue growth every quarter to achieve FY22 organic revenue guidance.

The company is also expecting an improvement in margins by 100 basis points. “The first thing that is going to play out which underlies the 100 basis points improvement in margin that we have called out in FY22 over FY21 is the fact that the discounts in the travel business that we saw in FY21 have reversed. The other metric which has seen an appreciable change in the right direction for us has been our offshoring number. Offshoring numbers have increased and we believe we can sustain them at higher levels. The operating leverage that we get from growth, the 17 percent minimum constant currency growth is the other thing that plays in,” Singh said.

He also said that the war for talent has been on-going for the last 4-5 months and the net headcount between January-March went up by 967. “This quarter, we expect to be able to repeat that performance or get fairly close to that performance in terms of net headcount addition. So, between January to May current calendar year, our intent is hopefully to lock in a net headcount increase or somewhere around 1,600-1,700 and hopefully add more to it in the last month of the quarter,” he said.

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(Edited by : Abhishek Jha)