Coforge Q2 result preview: PAT likely to rise over 45%; Revenue by 3.6%

Coforge, a Noida-based information technology (IT) firm, is all set to report its financial results for the July–September period on Thursday, October 19. Analysts widely expect pressure on earnings due to weak execution and the deal ramp-up.

According to Zee Business research, Coforge is estimated to report a consolidated profit after tax (PAT) of Rs 240 crore for the quarter ended September 30, 2023, which translates to a quarter-on-quarter (QoQ) increase of 45.5 per cent.

The analysts expect the IT firm's revenue for the three-month period to grow by 3.6 per cent to Rs 2,300 crore QoQ.

Further, the dollar revenue of the company is expected to be Rs 27.85 crore against Rs 27.18 crore in the quarter ending June, which implies an increase of 2.5 per cent. Earnings before interest and taxes (EBIT) for the September quarter are likely to be logged at Rs 305 crore as against Rs 230 crore QoQ.

Zee Business analysts estimate the company's margin for the second quarter of the current fiscal at 13.3 per cent as compared to 10.4 per cent a quarter ago.

They expect the constant current (CC) to rise by 2.2 per cent in Q2 and also expect the management to maintain 13-16 per cent CC earnings growth guidance in FY24.

Analysts will keep an eye on the banking, financial services, and insurance (BFSI) vertical outlook, deal win TCV, and client engagement.

Here's how Coforge fared in Q1

The mid-cap IT company reported in its April-June quarter results for fiscal 2023–24 a net profit of Rs 165.3 crore, up 10 per cent, compared to Rs 1,49.7 crore in the corresponding period last year.

Coforge share price: Past performance

As of October 18, Coforge shares has grown over 28 per cent in value in the past year, sharply outperforming an 8 per cent rise in the headline Nifty50 index.

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