IT services company Coforge Ltd has unveiled its earnings for the fiscal fourth quarter, revealing a profit of ₹261.20 crore, which fell short of market expectations. However, this represents a solid growth of 16.76% compared to ₹223.70 crore from the same quarter in FY24. The company also reported an impressive revenue from operations amounting to ₹3,409.90 crore, marking a significant 47.08% increase from ₹2,318.40 crore during the previous fiscal year’s fourth quarter. The EBIT for the quarter stood at ₹449.4 crore.

Earnings Analysis

According to a recent CNBC TV18 survey, analysts had anticipated that Coforge would achieve a profit of ₹285 crore and projected revenue of ₹3,530 crore for the quarter. Despite not meeting these forecasts, the company’s growth trajectory indicates resilience in a competitive market.

Annual Performance Overview

For the entire fiscal year, Coforge reported total revenue of ₹12,050.7 crore, reflecting a 33.8% increase year-over-year when calculated in INR. In USD terms, this equated to approximately $1.45 billion, showcasing a 31.5% rise year-on-year. The EBITDA for FY25 reached ₹1,998.2 crore, a commendable increase of 31.7% year-on-year.

Sudhir Singh, Chief Executive Officer and Executive Director of Coforge Ltd, remarked, "FY25 has been an outstanding year for us, achieving 32.0% growth in constant currency terms. This was largely fueled by 14 large contracts and extensive growth across our various sectors and geographic markets. Our impressive performance amid a challenging macroeconomic climate underscores the strength of our client relationships and the dedication of our team."

Record-Breaking Order Intake

Coforge has reported a remarkable achievement in large deal closures, recording an order intake of $2.1 billion during the quarter. The executable order book for the upcoming twelve months stands at $1.5 billion, representing a 47.7% increase compared to last year and a 10.3% rise from the previous quarter. The company secured five large contracts during this period across North America, the UK, and APAC regions.

Dividend Declaration

In a move to reward its shareholders, Coforge’s board has announced a fourth interim dividend of ₹19 per equity share (face value of ₹10). The record date for this dividend is set for May 12, 2025. The company has stated that the dividend payments will be made within 30 days of declaration.

Attrition and Workforce Update

Coforge reported an attrition rate of 10.9% in Q4 FY25, showing an improvement of 60 basis points year-on-year, which positions it among the industry’s lowest rates. The workforce now stands at 33,497, with a net addition of 403 employees over the last quarter. This marks a significant 35.5% increase in headcount since the beginning of the fiscal year.

Coforge’s robust growth and strategic initiatives indicate a promising outlook as it prepares for the upcoming fiscal year. As the IT landscape continues to evolve, the company’s ability to adapt and thrive will be crucial for its sustained success.