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Revenue
₹2,276 Cr
verified against source
Revenue YoY
16.2%
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 strong Q2 FY24 with revenue growth of 16.2% YoY in CC terms and an adjusted EBITDA margin of 17.6%, expanding 160 bps sequentially. Growth was broad-based across verticals, with BFSI up 3.8% QoQ and insurance up 2.4% QoQ. Order intake remained robust at $313 million, marking the seventh consecutive quarter above $300 million, and the executable order book stood at $935 million, up 16.6% YoY. Management reiterated FY24 revenue guidance of 13%-16% CC and flat adjusted EBITDA margins, supported by hedge gains and ARC initiatives in H2. Key risks include persistent macro uncertainty and potential furlough impact in Q3.
Colored figures show movement against the previous available record.
Guidance to track
- Management reaffirmed the annual guidance given at the start of the year, expecting to deliver within the range despite macro challenges.
- Management expects full-year adjusted EBITDA margins to be similar to FY23, supported by hedge gains and ARC initiatives in H2.
- Driven by hedge gains, absence of client event costs, and initial ARC benefits, partially offset by furloughs.
- One-time ESOP acceleration in Q2; costs expected to decline by about 30 basis points next fiscal year.
Risks flagged
- Management acknowledged that the macro environment remains challenging and could stress demand, especially in discretionary spending.
- Management expects furloughs in Q3, which could offset some of the margin gains from hedge and ARC initiatives.
- Management admitted they are not happy with ARC progress in H1 and are relying on aggressive actions in H2 to meet targets.
- Management noted initial signs of normalization in travel spend, which could impact growth in that vertical.
Key quotes
- We believe that sustained growth is a function of both winning large deals and equally importantly, ensuring that existing business is retained.
- We are crystal clear, we are a growth firm. We will deliver growth, not just in FY 2024, where the guidance is 13%-16%, but in FY 2025, 2026, 2027, and then on.
- The combination of us being very, very focused and therefore very, very competent in key areas, along with it being within the non-discretionary and transformation areas, has meant we've been able to grow where others have struggled.
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