Coforge Ltd — Q3 FY25
Coforge delivered an exceptionally strong Q3 FY25 with sequential CC revenue growth of 8.4% and YoY CC growth of 40.3%, driven by broad-based strength across geographies, vertic...
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
Demand environment and budget season outlook
Asked by Saurabh Goel, Morgan Stanley
Management provided a clear, specific answer about demand trends across verticals.
Read the exchange
Question
just wanted to understand from an industry perspective what we're hearing from the demand side, especially given that this is a budget time going on?
Sudhir Singh, CEO
There is a definite yet gradual improvement in demand across all sectors that is playing out. ... travel sector continues to show impressive resilience and growth... BFS... demand across multiple micro areas...
Partial answer
Medium priority
Cigniti cross-sell details and pipeline
Asked by Saurabh Goel, Morgan Stanley
Management gave some color but did not specify which services or quantify cross-sell impact.
limited detail on services cross-soldno quantification of cross-sell revenue
Read the exchange
Question
with respect to Cigniti, the cross-sell that we've seen this quarter, if we could highlight what all services we were able to cross-sell...
Sudhir Singh, CEO
The specific large deal at Cigniti was a deal that was signed with one of the top five customers of the firm. It involved a limited amount of cross-sell of existing Coforge services.
Answered
High priority
Sustaining advantages as Coforge scales to $3B
Asked by Abhishek Pathak, Motilal Oswal
Management provided a structured answer with three specific drivers.
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Question
as Coforge goes from $2 billion to $3 billion in revenues, how does one expect to sustain the advantages that Coforge currently has in terms of winning deals, challenging incumbents?
Sudhir Singh, CEO
growth rate increase that has happened of late and that we expect to sustain is being driven through three primary factors: maturing of partnerships, investments like Quasar AI platform, and deep functional expertise.
Answered
High priority
Deal win run rate acceleration
Asked by Abhishek Pathak, Motilal Oswal
Management gave a clear affirmative answer.
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Question
deal wins have been quite strong again this quarter. ... can we expect this run rate to accelerate in the next year?
Sudhir Singh, CEO
The answer is a clear, emphatic yes, looking at the aggregate deal pipeline and looking at the different cuts of that pipeline...
Answered
Medium priority
Impact of California fires on insurance vertical
Asked by Abhishek Pathak, Motilal Oswal
Management addressed the question directly, explaining why they see it as temporary and highlighting structural trends.
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Question
just want your thoughts on the insurance vertical. There has been a significant amount of disruption with regards to the California fires...
Sudhir Singh, CEO
The California fires are a point in time, even we believe. ... the structural secular change is that in the insurance space, the SMB market is going through transformation...
Answered
High priority
GenAI adoption and revenue impact
Asked by Vibhor Singhal, Nuvama Equities
Management provided a detailed view on GenAI demand and explicitly stated no deflationary impact.
Read the exchange
Question
what are the conversations around the GenAI adoption at this point of time? ... could there be some cannibalization of revenue?
Sudhir Singh, CEO
GenAI... demand from a revenue addressal perspective is increasingly pivoting towards engagements that are more focused only on data... we certainly do not... see GenAI as something that's going to be deflationary from our vantage.
Answered
Medium priority
Travel vertical rebound drivers
Asked by Vibhor Singhal, Nuvama Equities
Management clearly attributed the rebound to multiple sub-segments within travel.
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Question
is this turnaround because of the recovery in our core travel clients like airlines and hospitality, or is it because of the travel ancillary companies?
Sudhir Singh, CEO
The demand is coming from travel platform players, what we internally call travel tech. It continues to be very strong from airlines, and it continues to be very strong from airports...
Answered
High priority
ESOP cost impact and margin trajectory
Asked by Vibhor Singhal, Nuvama Equities
CFO provided specific numbers and a clear margin trajectory.
Read the exchange
Question
if you could just briefly outline the impact of the two ESOP schemes... and just a related question on utilization.
Saurabh Goel, CFO
ESOP cost in the current quarter... close to 200 basis points of revenue... will come down to 150 basis points by Q1... EBIT margin should be expanding close to from 11.8% currently... should be hitting roughly 13.5% by Q3 next year.
Answered
High priority
Large deal wins by vertical and nature
Asked by Aniket Pande, DSP Mutual Fund
Management listed each deal with vertical and brief description.
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Question
The deal wins which you have won into this quarter are specifically into which vertical, and what's the nature of those deals?
Sudhir Singh, CEO
The first one comes from an asset and wealth management client... second deal comes from the ASEAN region... third one is one of the leading airlines... fourth one is a renewal with an insurance client in North America.
Answered
Medium priority
Furlough impact and reversal
Asked by Aniket Pande, DSP Mutual Fund
Management quantified the impact and confirmed reversal.
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Question
the furlough-related impact. Is it mainly in BFSI in this quarter, and can we expect revival in that for the next quarter?
Sudhir Singh, CEO
there was 50 basis points impact both in banking and insurance... Next quarter on, we will have that getting reversed. That's why we will see a tailwind on margins as well...
Answered
Medium priority
GCC deal margin profile and free cash flow impact
Asked by Sandeep Shah, Equirus Securities
Management clearly stated margins are normal and no FCF impact.
Read the exchange
Question
just wanted to understand the profile of the deals on GCC in terms of margin profile. Will it be slightly linear or non-linear? And will this may impact our free cash flow?
Sudhir Singh, CEO and Saurabh Goel, CFO
The margins are normalized margins as we see in any other deal. ... No impact on free cash flow. These are normal deals like any other normal ramp-up.
Answered
High priority
Adjusted EBITDA margin guidance and debtors increase
Asked by Sandeep Shah, Equirus Securities
CFO reaffirmed margin guidance and explained debtor increase as revenue-driven.
Read the exchange
Question
In the earlier calls, we were guiding for a 50 basis points increase in the adjusted EBITDA margin... do we still stand by? And the second question on the debtors...
Saurabh Goel, CFO
We believe that the tailwind that we expect in the next quarter on account of furloughs getting reversed... margins will go up. ... DSO is flat at 60 days, including Cigniti. Without Cigniti, DSO has actually come down from 60 to 57 days.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBIT margin 11.8% in Q3 | 11.8% | 17.8% | Understated vs filing |
| EBIT margin expected to hit 13.5% by Q3 next year | 13.5% | 17.8% | Understated vs filing |
| Pro forma adjusted EBITDA margin 16.7% last year | 16.7% | 17.8% | Understated vs filing |
| Consolidated adjusted EBITDA margin 17.4% now | 17.4% | 17.8% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.