Target: ₹4,925
CMP: ₹3,906.9
Coforge reported revenues of $246.9 million, up 6.2 per cent q-o-q/ 22 per cent y-o-y in CC terms. INR revenue for the quarter stood at ₹1,959.40 crore, up 7.1 per cent q-o-q/ 24.8 percent y-o-y.
Operating Margins rose 190 bps this quarter to 14.4 per cent, mainly due to increase in offshore revenues (with only 10 bps due to positive currency impact).
Order intake of $304 million was seen this quarter as two greater-than-$30 million TCV deals were signed. Executable order book of locked-in orders over the next 12 months stands at a high of $802 million vis-a-vis $746 millioin the previous quarter, assuring medium term revenue visibility.
Coforge added 11 new clients this quarter while reporting 94 per cent in repeat business, implying high quality service provision leading to consistent new business from same clients.
Financial services and travel industry contributed nearly 75 per cent of global revenues, continuing resilience despite the macroeconomic uncertainties.
We feel that revenue growth will remain robust and sustained, and hence maintain our Outperform rating and assign a 12-month price target of ₹4,925.