Coforge share price rose more than 13% to an intra-day high of Rs 9,320 after the company reported strong quarterly results on January 22. Its net profit rose 6.6% year-on-year to Rs 215.5 crore for Q3 FY25.
Here are 3 reasons why the stock is soaring high Healthy quarterly results
The company’s revenue in constant currency terms grew by 8.4% sequentially in Q3 FY25 to Rs 3,318.2 crore. In US Dollar terms, the revenue rose by 7.5% Quarter-over-Quarter to $397 million. Its EBIT stood at Rs 316.2 crore for the reporting quarter of the current fiscal year against Rs 287.6 crore in the same quarter the previous year. EBIT margin grew marginally to 9.5% from 9.4% in the last quarter. The company’s management said that the upcoming year’s promises to be solid. It has signed 4 large deals in the reporting quarter of the current financial year, with the order book standing at $1.3 billion, up 40% YoY.
Dividend announcement
Also, Coforge announced an interim dividend of Rs 19 per equity share, with January 30 as the record date. This is the third interim dividend the company is paying out to its shareholders. Earlier the company announced an interim dividend in the previous quarter of Rs 19 per equity share.
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The overall sentiments for the IT stocks are higher from the last two trading sessions, which further helped Coforge’s share price. IT major Wipro hit the upper circuit at Rs 324.60. This is the second day it is commanding the position of top gainer in the Nifty 50. Other tech stocks like Tech Mahindra rose 2.7%, Mphasis up 4.44%, LTIMindtree up 3%, and so on.
Apart from that, another IT company Persistent Systems reported net profit growth of 14% quarter-on-quarter standing at Rs 373 crore. The revenue on dollar terms came in at $360.2 million, up 5% QoQ. The company’s revenue increased by 5.7% to Rs 3,062 crore.
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