Coforge Limited
Coforge is an IT services company providing end-to-end software solutions and services. It is among the top-20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Sabre, and SITA. Over the years, Coforge has set up subsidiaries in the US, Singapore, Australia, UK, Germany and Thailand, mainly to market and mobilise projects for the software division. The company has business partnerships with large IT companies across the world.
Product Mix
The company provides solutions in
- Product engineering,
- Digital solutions,
- Data analytics,
- Artificial intelligence/machine learning (AI/ML),
- Cloud,
- Business process re-engineering,
- Digital process automation
- Low Code/No Code platforms.
Shareholding Pattern
-PUBLIC GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 6,432 | 8,015 | 9,179 |
| Sales Growth % | 37.94% | 24.61% | 14.53% |
| Expenses | 5,330 | 6,733 | 7,751 |
| Operating Profit | 1,102 | 1,282 | 1,428 |
| OPM % | 17% | 16% | 16% |
| Net Profit | 715 | 745 | 836 |
| EPS in Rs | 108.65 | 113.58 | 130.7 |
Synopsis of Financials
- Sequential CC growth of 8.4% and Y-O-Y CC growth of 40.3%.
- Cigniti business grew 3.5% CC sequentially, non-Cigniti business grew 9.4% CC sequentially.
- Adjusted EBITDA increased by 122 bps sequentially despite revenue growth of 8.4%.
- BFS grew 20.4% Y-O-Y despite furloughs; Insurance grew 20.3% Y-O-Y; Travel grew 43.4% Y-O-Y; Government outside India grew 48% Y-O-Y.
Final Outlook
Revenue grew by 28% year-over-year, indicating strong topline growth. Profit before tax increased by 19%, though at a slower pace than revenue growth, likely due to higher expenses. Overall profitability looks healthy with a double-digit net profit margin.
The company has a strong asset base with investments and cash/bank balances accounting for a significant portion. Low debt levels with a debt-to-equity ratio of around 0.13, indicating a conservative capital structure. Healthy current ratio, suggesting good liquidity position.
Company has been maintaining a healthy dividend payout of 49.3%.
Overall, Coforge appears to be performing well operationally, with robust revenue growth, profitability, and a solid balance sheet. However, the stock seems undervalued compared to its peers and trading near its 52-week low.
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