Bengaluru, July 21
Mid-tier IT services firm Coforge is confident of sustaining its revenue growth momentum for the fiscal year because of a strong deal pipeline and execution rigour, according to Sudhir Singh, CEO of Coforge.
In Q1 the company recorded a 21.4 per cent year-on-year(YoY) revenue growth at ₹2,221 crore, sequentially up by 2.4 per cent. Its profits stood at ₹165.3 crore up by 10.4 per cent YoY. Coforge has reiterated its FY24 annual revenue growth guidance of 13 – 16 per cent in constant currency terms.
Singh told businessline, “Our consistent growth over the last couple of quarters and our continued ability to sign large deals, grow business with existing clients, and get new logos even in a depressed macro-environment has worked in our favor. Our growth is coming from consolidation deals and taking over wallet share from other players.”
Further, although the macros are uncertain and demand is depressed, pockets of opportunities still exist, he adds. The company sees opportunities in certain specific verticals of insurance, travel, and banking that remain resilient.
It also bets on its deal pipeline to deliver growth. In the first quarter, its order intake was $531 million. It signed a $300 million and a $65 million TCV deal in the BFS space. Singh noted that the $300 million consolidation is expected to contribute $60 million in revenue.
Coforge’s margins were down from 19.6 per cent in Q4 to 16 per cent in Q1 due to wage hikes and higher onsite expenses during the quarter. Singh said, “Even historically we start the year with 16-16.5 per cent, and later for the full year deliver 18.3-18.7 per cent. Similarly, we promise the same for the current year as well.”
The company increased its headcount by 1000 employees in Q1, total employee count now stands at 24,224. In terms of the hiring outlook, Singh noted that the hiring outlook will be in line with the revenue growth that is anticipated. Like 13-16 per cent revenue growth, headcount will also rise by the same level.
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Published on July 22, 2023
