Coforge Q3 Review - Operating Profit Margin Outlook Upgrade, Positives Priced In: Dolat Capital
Representational image. (Photographer Sondeep Shankar/Bloomberg News)

Coforge Q3 Review - Operating Profit Margin Outlook Upgrade, Positives Priced In: Dolat Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Coforge Ltd. reported revenue growth of 3.3% QoQ in constant currency terms (our estimate 3.6%) led by traction in banking and financial services, travel and other vertical (12.7%/9.7%/3.5% QoQ).

Operating profit margin stood at 13.0% (down 77 basis points QoQ) below our estimate of 13.5% due to selective wage hikes leading to 6.5% QoQ increase in employee cost.

Leading indicators are strong as it signed two large deals (in Insurance and health) taking order intake to $192 million.

12 months executable order book grew 18% YoY to $501 million. Pipeline also contains several large deals and win rates are improving.

Click on the attachment to read the full report:

Dolat Capital COFORGE Q3FY21 Result Update.pdf

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