Coforge Q2 result preview: PAT likely to rise over 45%; Revenue by 3.6%

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Noida-based IT firm, Coforge, is gearing up to announce its financial results for the July to September period on October 19. Analysts predict that earnings may face pressure due to challenges in execution and deal ramp-up.

It is expected that Coforge will report a consolidated profit after tax (PAT) of INR 240 crore for the quarter ending on September 30, 2023, indicating a substantial quarter-on-quarter (QoQ) surge of 45.5%.

For the same three-month period, analysts anticipate a 3.6% QoQ increase in the IT firm’s revenue, reaching INR 2,300 crore.

Moreover, the company’s dollar revenue is projected to rise to INR 27.85 crore, up from INR 27.18 crore in the previous quarter, reflecting a 2.5% increase. Earnings before interest and taxes (EBIT) for the September quarter are expected to be INR 305 crore, compared to INR 230 crore in the previous quarter.

Estimate the company’s margin for the second quarter of the current fiscal year to be 13.3%, a notable increase from the 10.4% margin of the previous quarter.

They also expect a 2.2% growth in constant current (CC) for Q2 and anticipate the management to uphold the 13-16% CC earnings growth guidance for FY24.

Analysts will be closely monitoring the outlook for the banking, financial services, and insurance (BFSI) sector, total contract value (TCV) for deal wins, and client engagement.

Coforge’s Performance in Q1:

In the April-June quarter of fiscal year 2023–24, the mid-cap IT company reported a net profit of INR 165.3 crore, representing a 10% increase compared to INR 149.7 crore in the corresponding period of the previous year.

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