Coforge Ltd — Q2 FY25
Coforge delivered an exceptionally strong Q2 FY25, with consolidated revenue of $369.4M, up 26.8% sequentially in USD terms, driven by broad-based growth across all verticals an...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
96%Questions answered0Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Furlough expectations for Q3 and vertical growth outlook.
Asked by Sulabh Govila, Morgan Stanley
Management gave specific numbers and clear outlook on furloughs and verticals.
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Question
In the next quarter, particularly, what are you hearing on furloughs from the quarter and the expectation for the same versus, let's say, last year? And then with respect to verticals...
Sudhir Singh, CEO
As far as furloughs are concerned, we expect furloughs to be in line with the normal trend in quarter three... BFS has grown 5.2% sequentially. Insurance... almost 9%... travel more than 6%. Government also more than 6%.
Answered
High priority
Cigniti go-to-market and cross-sell progress.
Asked by Sulabh Govila, Morgan Stanley
Management provided specific updates on leadership and cross-sell success.
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Question
Is the go-to-market and cross-sell plan already in motion there? And if you could highlight any updates on the same.
Sudhir Singh, CEO
Go-to-market plan is firmly in place... Cross-sell is moving exceptionally well... the eagerness with which a team that was largely selling only one service line has embraced the other ten.
Answered
Medium priority
Recurrence of one-off expenses below EBITDA.
Asked by Sulabh Govila, Morgan Stanley
CFO gave clear guidance on non-recurrence and future run-rate.
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Question
Wanted to understand whether they will recur from 3Q or they are done?
Saurabh Goel, CFO
We don't expect any past liability to now come in... integration-related expenses... it's come down to two million dollars. I think it will be some million dollars in one or two quarters, and then it will die off.
Answered
High priority
Cross-sell to Cigniti clients and headcount utilization strategy.
Asked by Abhishek Pathak, Motilal Oswal
Management directly addressed both cross-sell drivers and utilization strategy.
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Question
Considering the demand is now certainly recovering across the board, does it now become easier to sort of cross-sell service lines... And secondly, on the headcount bit... utilization levels are now at 82%... is it tempting to sweat the asset a bit more?
Sudhir Singh, CEO
It's not the demand environment recovery that is largely driving the cross-sell effectiveness... it's just the fact that that team was primed... We don't want to sweat the asset anymore. We want to keep utilization at where it is.
Answered
High priority
Cigniti margin expansion potential beyond current quarter.
Asked by Abhishek Pathak, Motilal Oswal
Management gave a specific margin target and timeline for improvements.
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Question
Going forward, is there any more low-hanging fruit that you will quite easily pluck, and the margins may expand to your guided range?
Sudhir Singh, CEO
There are still low-hanging fruits. We've given you an estimate of 18% over the next two quarters. Most of that should come through addressing the low-hanging fruit. Structural improvements beyond that... we'll talk about those next year.
Answered
High priority
Macro recovery status and sustainability of organic growth.
Asked by Debashish Mazumdar, Swan Investments
Management affirmed recovery and gave a clear positive outlook.
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Question
Do you think we have crossed that level, and where recovery has kind of started coming back, especially in your set of clients and sectors?
Sudhir Singh, CEO
In March this year... we had made another assertion... that the demand environment has seen a definite and positive turn. We believe that is in play, and that demand environment will continue to underpin our growth going forward.
Partial answer
High priority
Sustainability of 5% organic CC growth for next quarters.
Asked by Debashish Mazumdar, Swan Investments
Management avoided confirming the 5% number but gave qualitative confidence.
no specific number givendeferred to qualitative assurance
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Question
Is it like that this 5% kind of number is sustainable for next two to three quarters?
Sudhir Singh, CEO
As you're aware, we've stopped giving a formal guidance on numbers, but what we can assure you is that the broad-based growth is going to continue... Growth going forward... will continue to be broad-based. It will also... be robust.
Answered
High priority
Success of cross-sell to Cigniti's large clients and micro markets.
Asked by Debashish Mazumdar, Swan Investments
Management confirmed success and exceeded expectations.
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Question
Do you think that we are getting success in those strategies of cross-selling to existing larger clients of Cigniti and getting into those micro markets?
Sudhir Singh, CEO
We clearly are... We are getting success slightly ahead of what our expectations, which were already high, were when it comes to cross-sell.
Answered
High priority
Travel vertical outlook and large deal pipeline.
Asked by Vibhor Singhal, Nuvama
Management gave specific areas of deal pipeline and positive outlook.
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Question
What is the outlook on this vertical? Are things turning around? And any other large deal pipeline that you might have signed or be looking to sign?
Sudhir Singh, CEO
The large deal pipeline for the travel vertical is looking extremely promising. We are seeing deals spanning spend areas of IT modernization and mainframe offload... e-commerce and NDC for airlines... guest experience and personalization for hospitality.
Answered
High priority
Banking vertical growth areas and Cigniti contribution.
Asked by Vibhor Singhal, Nuvama
Management detailed specific growth areas and Cigniti's role.
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Question
On the banking vertical, what are we looking at in terms of new growth areas over and above our existing capabilities? How does Cigniti add?
Sudhir Singh, CEO
Cigniti, the largest vertical that they have is banking... the ability to cross-sell horizontal businesses in that functional space has gone up... clients are boosting investment in IT and cloud and data areas... financial crime prevention, DORA, open banking.
Answered
Medium priority
Confidence in next seven years and acceleration of growth.
Asked by Manik Taneja, Axis Capital
Management gave detailed reasons for confidence without specific numbers.
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Question
If you could help us understand, if you're looking at further acceleration in terms of growth, given the platform that we've created now.
Sudhir Singh, CEO
That confidence is near absolute... Coforge today is a far more diversified organization... growth vectors... have primarily been industry-led... horizontal capability mix... expanded geo mix gives us confidence.
Answered
High priority
Reasons for strong deal pipeline and GCC revenue durability.
Asked by Kawaljeet Saluja, Kotak Securities
Management attributed strength to specific strategic changes.
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Question
Your deal pipeline and deal wins have been exceptionally strong... would love to get your views on whether it's the environment or something has changed in Coforge's portfolio.
Sudhir Singh, CEO
We think it's more a function of the mix having evolved... expansion in the credibility that we built across newer verticals... product engineering... geographical expansion.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Cigniti margin expansion of 30 bps. | 30 bps | 55 bps | Matches filing |
| Cigniti margin target of 18% over next two quarters. | 18% | 15.8% | Overstated vs filing |
| ESOP cost incremental 120 bps in Q3. | 120 bps | 55 bps | Overstated vs filing |
| Segment EBITDA margin 14.9% excluding one-offs. | 14.9% | 15.8% | Understated vs filing |
| Adjusted EBITDA margin 15.8% including add-backs. | 15.8% | 15.8% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.