BENGALURU, Oct 19 (Reuters) – Indian IT services company Coforge (COFO.NS) on Thursday reported a 16.2% jump in second-quarter revenue and reiterated its revenue growth forecast for fiscal year 2024, aided by new deal wins amid a challenging macroeconomic environment.
Consolidated revenue from operations rose to 22.76 billion rupees ($273.4 million) for the quarter ended Sept. 30. However, its net profit fell 10% to 1.81 billion rupees due to higher expenses.
Coforge’s order intake for the quarter rose to $313 million, from $304 million last year.
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WHY IT MATTERS
Coforge’s results come at a time when Indian IT industry has been grappling with volatile macroeconomic situation as enterprises are scaling down and looking to conserve cash leading to delays in deal closures.
The company’s revenue growth beat peers Tata Consultancy Services (TCS.NS), which missed estimates and LTIMindtree, which posted a smaller 8.2% increase.
It, however, lagged behind Persistent Systems (PERS.NS), which posted an 18% growth in revenue and a 20% growth in profit.
PEER COMPARISON
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER PERFORMANCE
— All data from LSEG
— $1 = 83.2540 Indian rupees
Reporting by Nishit Navin in Bengaluru; Editing by Varun H K
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