The shares of the digital services and solutions provider gained up to 12 percent after the company’s net profit and revenue increased by 10 percent and 42 percent YoY respectively in Q3FY25.
With a market capitalization of Rs 60,491.70 crore, the shares of Coforge Ltd were trading at Rs 9047.60 per share, increasing around 10 percent as compared to the previous closing price of Rs 8,225.10 apiece.
Reason for Rise
The shares of the company have seen positive movement after Coforge Ltd 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.
The board has also recommended an interim dividend of ₹19 per share, record date for which has been fixed as January 30, 2025.
Additionally, 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.
Management Overview
Management highlighted Q2 FY2025 as a strong quarter, validating key assertions: the Cigniti acquisition, driven by healthy fundamentals and growth synergies; Coforge’s robust organic business; and a positive demand environment shift based on internal data, not external analyst Reports.
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Order Intakes
The company reported an order intake of $516 million for the quarter, including $67 million from Cigniti. Its signed order book for the next 12 months increased to $1.3 billion, reflecting a 40% year-on-year growth, highlighting strong demand and growth momentum.
Vertical Performance
The company saw strong vertical growth with Banking and Financial Services up 5.2%, contributing 31.3% to revenue. Insurance grew 8.9% (21.8%), Travel increased 6.2% (18%), and Government rose 6.7%, contributing 7.8%, reflecting overall positive performance across key sectors.
Partnerships and Recognitions
The company launched its Environmental Net Zero Offering (ENSO) in partnership with ERM and Salesforce. It renewed its Microsoft Azure Expert Managed Service Partner designation and was promoted to a top-tier partner in Pega’s Global Elite program, strengthening its industry position.
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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The shares of the digital services and solutions provider gained up to 12 percent after the company’s net profit and revenue increased by 10 percent and 42 percent YoY respectively in Q3FY25. With a market capitalization of Rs 60,491.70 crore, the shares of Coforge Ltd were trading at Rs 9047.60 per share, increasing around 10
The post IT stock jumps 12% after reporting 42% YoY revenue growth in Q3; Announces dividend appeared first on Trade Brains. Read MoreNews, Stocks, Coforge Ltd, Coforge Ltd latest news, Coforge Ltd news, Coforge Ltd share price, Coforge Ltd stock price, IT stock, market news, stock market, Stock market news, stock news Trade Brains
