Indian mid-cap IT stock Coforge soared over 11% on Thursday on the NSE after posting strong earnings in the quarter ended December and as the company announced acquisition plans.
The company’s consolidated net profit grew 3% sequentially to Rs 206.4 crore, and revenue from operations rose over 8% to Rs 3,318.2 crore. Coforge’s newly acquired Cigniti business reported revenue growth of 3.5% in constant currency terms.
Further, this was also the second straight quarter where the order intake was a little over $500 million. “Current order executable is at $1.37 billion, up 40.1% y-o-y,” the company said.
“A 8.4% sequential cc growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth.” said Sudhir Singh, chief executive officer and executive director of the firm.
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Additionally, Coforge will also acquire 100% stake in Xceltrait for $17.85 million. Xceltrait, a US based company, specialises in the implementation of ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules.
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