Coforge Q4 Net Profit Drops 45%; Full Year Revenue Crosses $1 Billon Mark

IT company Coforge on Thursday reported nearly 45 per cent year-on-year fall in its consolidated net profit for March quarter at Rs 115 crore hurt by one time expenses, but the company raced past the $1 billion revenue milestone for the full year FY23.

Net profit for the fourth quarter, excluding one off expenses at Rs 232.7 crore, rose 12.1 per cent year-on-year.

The one time expenses pertained to the cost incurred by the company towards gifting an Apple iPad to each of its 21,000 staff to celebrate the achievement of the $1 billion revenue milestone.

The company has also made provision towards US listing plans, primarily on legal and banking expenses, and will take a call on timing of secondary ADR based on market conditions.

Meanwhile, the revenue for the just ended March 2023 quarter was $264.4 million or Rs 2,170 crore. This translated to growth of 24.5 per cent in rupee terms and 13.8 per cent in dollar terms year-on-year.

"We believe that our performance during the quarter was marked by two key achievements. The first was a quarterly sequential $growth of 5 per cent. The second major landmark has been the firm crossing the $one billion revenue mark," Sudhir Singh, Chief Executive Officer of Coforge Ltd said.

The company's performance heading into FY24 "sets us up well to deliver robust growth," Singh added.

Amid a "tough" environment, for FY24, the firm issued an annual revenue growth guidance of 13 to 16 per cent in constant currency terms, and expects a gross margin increase of about 50 bps and adjusted EBITDA margin to be at similar levels as FY23.

The board has recommended an interim dividend of Rs 19 per share, and the record date for this payout will be May 9, 2023.

For the full year FY23, the net profit excluding one off expenses stood at Rs 811.7 crore, up 22.7 per cent year on year.

The FY23 revenue at $1,002 million or Rs 8014.6 crore, was up 24.6 per cent in rupee terms and 15.6 per cent in dollar terms.