The shares of the information technology (IT) solutions provider gained up to 1 percent after the company’s board scheduled a meeting to consider a stock split.
Price movement
With a market capitalization of Rs 50,322.01 crore, the shares of Coforge Ltd were trading at Rs 7,525.00 per share, decreasing around 2 percent as compared to the previous closing price of Rs 7661.10 apiece.
Reason for Rise
According to the company filing, Coforge Ltd’s board of directors has scheduled a meeting on Tuesday, March 04, 2025, inter-alia to consider the proposal of alteration in the share capital of the Company by sub-division/ split of the existing Equity Shares of the face value of Rs. 10 each, fully paid up.
Financial analysis
Recently, the company reported positive results in Q3FY25, revenue increased by 8 percent on a quarter-on-quarter basis from Rs. 3,062 crore in Q2FY25 to Rs.3,318 crore in Q3FY25. Further, revenue zoomed by 42 percent year on year, from Rs 2,323 crore in Q3FY24 to Rs. 3,318 crore in Q3FY25.
The company’s net profit increased by 14 percent on a quarter-on-quarter basis, from Rs. 234 crore in Q2FY25 to Rs. 256 crore in Q3FY25. Further, net profit magnified significantly by 10 percent year on year from Rs 243 crore in Q3FY24 to Rs. 256 crore in Q3FY25.
Balanced growth across verticals: BFS grew 20.4% Y-O-Y, Insurance 20.3%, Travel 43.4%, and Government outside India 48%. Emerging verticals surged 88.2% Y-O-Y. Geographically, Americas grew 9.2% Q-O-Q, EMEA 8.9%. Service lines saw Engineering grow 69.2% Y-O-Y, Intelligent Automation 5.1% Q-O-Q, and Cloud & Infrastructure 19.4% Q-O-Q.
AcquisitionÂ
Coforge has signed an agreement to acquire Xceltrait Inc. for $17.85 million. Xceltrait, a US-based company, specializes in implementing ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules, bringing valuable expertise in the Property & Casualty (P&C) insurance industry to Coforge.
Recently, Coforge Ltd’s board approved the scheme of amalgamation of Cigniti Technologies with the company. Currently, Coforge holds 54% of Cigniti’s expanded share capital. Moreover, 1 equity share of the Transferee Company of Rs 10 each is fully paid up for every 5 equity shares of the Transferor Company of Rs 10 each fully paid up.
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Order Intake & Future Growth
The company secured a $501 million order intake in Q3, marking two consecutive quarters above half a billion. With a strong pipeline of large deals and a 40% Y-O-Y order book growth, it remains confident in sustained growth, backed by a strong workforce.
AI and GenAI Initiatives
The company expanded its AI portfolio to 30+ capabilities, enhancing productivity across sectors. It continues investing in workforce upskilling, with 95% certified in AI tools, ensuring expertise in advanced AI technologies. These initiatives drive innovation and efficiency, strengthening client solutions and industry leadership..
Management Commentary
The management maintains an optimistic outlook for sustained growth, driven by strong execution and diverse growth vectors across geographies and service lines. With a strategic focus on expansion and operational excellence, they anticipate continued momentum, leveraging market opportunities to enhance profitability and long-term success.
Company Snapshot
Coforge Limited is an India-based information technology (IT) solutions provider. It specializes in application development and maintenance, managed services, cloud computing, and business process outsourcing. The Company offers computer programming consulting and related services.
Written by Abhishek Singh
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