Coforge's Q4 revenue slightly below expectations, contract wins double

IT firm Coforge reported a fourth-quarter revenue slightly below expectations, reflecting subdued tech spending from clients amid macroeconomic challenges.

The $254 billion IT sector in India has faced hurdles as clients have reduced spending on non-essential projects due to macro headwinds and a high-inflation environment.

In the three months ending March 31, Coforge's consolidated revenue increased by 8.7 per cent year-on-year to Rs 2,359 crore, slightly missing analysts' estimates of Rs 2,395 crore.

However, the company saw a significant boost in net profit, which surged by 95 per cent to Rs 224 crore during the same period.

Coforge's fresh order intake more than doubled to $774 million, compared to $301 million a year earlier, driven by a $400 million deal signed during the quarter.

Furthermore, the company announced plans to acquire up to a 54 per cent stake in Cigniti Technologies, aiming for revenue growth to $2 billion by fiscal 2027 and aiming to improve operating margins by 150–250 basis points during the same period.

CEO Sudhir Singh expressed optimism, stating, "The $400 million deal signed in Q4, the 56 per cent year-on-year increase in order intake, and the sequential margin improvement in the fourth quarter set us up strongly to deliver robust growth in fiscal year 2025 with expanded margins."

(With Reuters inputs)