Coforge Q1 Review - Deal-Wins Support Growth Upgrade; OPM Guidance Stretched: Dolat Capital
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Dolat Capital Report
Coforge Ltd. reported sequential growth of 16.0% (our estimate: 11.1%) led by organic growth of 7.0% q-o-q constant currency and two-month SLK Global Solutions acquisition contributing $14.6 million.
Ebit Margin stood at 10.8% (down 245 basis points q-o-q) (our estimate: 12.3%) due to visa cost, deal transitioning cost and wage hikes while SLK Global integration was margin accretive.
Announced dividend per share of Rs 13.
Coforge has upped its organic growth guidance to 'at least 19% in CC terms' from 'at least 17% CC'.
This is driven by gradual revival in travel vertical by Q4, conversion of three large deals in Q1 (intake in Q1 FY22 was at $318 million) and a strong demand environment.
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