Coforge Q2 Review - Strong All Round Delivery, Valuations Steep: Motilal Oswal
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Motilal Oswal Report
Coforge Ltd. reported an organic revenue growth of 3.9% QoQ constant currency in Q2 FY22.
Including the one-month incremental contribution from SLK Global Solutions, revenue growth stood in line at 6.6% QoQ (U.S. dollar).
Growth was driven by deal ramp-ups in the Americas (up 30% QoQ, including the impact from SLK Global).
Coforge reported an order intake of $285 million (down 10% QoQ/up 42% YoY), implying a book-to-bill ratio of 1.3 times. This also included three large deals.
Ebitda margin increased by 250 basis points QoQ to 18.6% (our estimate: 18.2%), led by large deal ramp ups, higher offshoring and utilisation, and pyramid rationalisation.
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