Coforge posted its Q1FY22 earnings. Net Profit for the quarter came in at Rs. 171.70 crore versus Rs. 108.40 crore in the year-ago period. EBITDA stands at Rs. 210.80 crore for the June quarter up versus Rs. 147.90 crore in June 2020. Revenue came in well above estimates at Rs 736.90 crore from Rs. 576.50 crore in June 2020, and the order inflow is also up almost 60 percent. Further, the company has raised their FY22 organic revenue guidance to 19 percent from earlier 17 percent. Sudhir Singh, Chief Executive Officer, Coforge, discussed the performance.

“We are very clear that we will deliver the 19 percent EBITDA pre-RSU, which is what we had guided at the beginning of the year,” he said in an interview with CNBC-TV18.

“On that count, we feel confident about the fact that in this quarter itself, which is Q2FY22, we should see around 200 basis points (bps) improvement from 16.1 percent level as seen in Q1FY22 itself,” he added.

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The company reported organic growth of 7.6 percent on a quarter-on-quarter (QoQ) basis; including SLK Global, the sequential growth is 16 percent on a QoQ basis. The organic year-on-year (YoY) growth at the end of Q1FY22 for the firm is 32.4 percent and including SLK Global it is 43 percent.

Coforge has participated in three large deals. “Our order intake number for this quarter was USD 318 million. Last quarter the number was USD 201 million. So that number has gone up by 60 percent. We have signed three large deals – one of them is the largest ever that our insure-tech business has signed in its history. second one is a USD 100 million plus banking mandate that we have and the third large deal is a pure cloud and infra play from our point of view,” he explained.

In terms of ADR listing, he said, “The board has passed an enabling resolution, it is out there for shareholder approval and hopefully that will come through. We are excited about going down that route if indeed the board decides. It clearly has a very positive rub-off on the brand both in terms of building credibility with prospective newer clients and also in terms of being able to attract strong executive talent to the organisation if we were to get listed on the US stock exchanges as well. Secondly, the firm then gets exposed to a broader set of global investors.”

For the full interview, watch the accompanying video.

(Edited by : Dipika Ghosh)