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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹2,357 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Coforge delivered a solid Q1 FY25 with 3.7% sequential CC growth excluding India, driven by broad-based demand across verticals. EBITDA margin expanded 210 bps YoY to 17%, aided by wage hike deferral and operational efficiencies. Order executable book rose 19.3% YoY to $1,070M, and record headcount addition of 1,886 signals strong future revenue conversion. Management expects growth momentum to resume in Q2, particularly in BFS and insurance, with Cigniti consolidation adding further upside. Margin guidance of 50 bps adjusted EBITDA expansion for FY25 remains intact. Risk: temporary normalization in top banking clients could persist if macro uncertainty delays program transitions.
Colored figures show movement against the previous available record.
Guidance to track
- Management reaffirms guidance of 50 bps improvement in adjusted EBITDA margin for the full fiscal year, with H1 margins expected to be 50 bps higher than H1 FY24.
- CFO guided that Cigniti's EBITDA margin will be 16%+ in Q2-Q4 FY25, up from 12.6% in Q1, driven by operational improvements and no further exceptional items.
- CEO stated that Cigniti will grow faster than Coforge in coming quarters, supported by new verticals and cross-sell initiatives.
- CFO expects the company to become net cash by fiscal year-end, aided by QIP proceeds and debt repayment.
Risks flagged
- Revenue from top 5 clients declined due to normalization in banking; if macro uncertainty delays program transitions, growth could be slower than expected.
- Wage hikes effective July 1 will depress margins by 130-150 bps in Q2, though management expects efficiencies to offset partially.
- Merger process may take 9-12 months; any delays or cultural friction could impact expected synergies and margin expansion.
- Analyst raised concern that GenAI could deflate volumes in testing; management downplayed risk but acknowledged functional testing may be impacted.
Key quotes
- A 3.7% sequential CC growth, excluding India, with a concurrent expansion in EBITDA by 210 basis points YOY in the same quarter, a record headcount quarterly increase of 1,886, a very significantly improved operating cash flow of $23.2 million for quarter one, and an ever-strengthening order executable next twelve month booked orders, which now is 19.3% higher YOY, gives us confidence that the quarters to come shall see robust and profitable growth.
- We believe that the demand has not just bottomed out, but that it is picking up. There is clearly a rebound on the demand front. It is tepid, but it is definite.
- We have not given a guidance for this year, and we will not be giving a guidance going forward as well. There is no other midcap firm in our industry that gives a guidance, and we are aligning with that process.
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