The shares of Coforge fell as much as 3.39 percent to Rs 3,593.05 in early trade on Thursday, as the Street failed to rejoice that fact that the company had one of the lowest attrition levels in the IT sector along with a robust order book.

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At 10.36 am, the IT firm's stock managed to pare off most of its initial losses and was quoting at Rs 3,698, down 0.56 percent or Rs 20.90 on the BSE.

The stock has underperformed the sector by around 1.20 percent and is trading lower than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Coforge intraday stock chart (source: BSE)

Coforge on Thursday reported a 56.16 percent jump in consolidated net profit at Rs 207.7 crore for the fourth quarter ended March 31, 2022.

Even as attrition remains a worry for the information technology sector at large, in an interview with CNBC-TV18, Sudhir Singh, ED & CEO, Coforge, said the company had one of the lowest rates in the industry.

Here's a look at Coforge's attrition figures on a sequential basis:

“Employee affiliation and employee commitment across the board within Coforge tend to be a big differentiator for us. So, our attrition number again came in at around 17 odd percent, which is materially lower than where the industry is operating right now,” he said.

This is the attrition rate registered by other IT companies:

“Attrition numbers, and salary costs, supply-side pressures continue and I don't see that abating over the next couple of quarters at least. And that is what we are factoring into our plans. The way attrition gets computed is on a trailing 12-month basis, and that is why while the percentage has gone up, the absolute attrition has not gone up,” he mentioned.

The IT giant's order book also remains robust, showcasing a quarter-on-quarter growth in deal wins.

Here’s a timeline of Coforge's deal wins and order book:

Singh shed light on the company’s outlook and guided for a growth of 20 percent. "At the current point in time, we are guiding for around 20 percent. This is still the beginning of the year, and hopefully, things will continue to evolve positively. We will keep refreshing our guidelines as the quarters progress,” Singh said.

"If you look at last year, we guided for a 17 percent growth, and we delivered a 38 percent growth. When the year began, we said that we plan to grow 17 percent and obviously, there were material tailwinds. There was an acquisition that came into play, and we ended up with 38 percent, and even organically came in at 24 percent," he added.

First Published:May 12, 2022 12:33 PM IST