Coforge Q4 Review - Strong Guidance; Valuation Leaves Little Room For Upside: Motilal Oswal
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.
Motilal Oswal Report
Coforge Ltd. reported industry-leading revenue growth of 7.1% QoQ (U.S. dollar) in Q4 FY21, above our estimates.
This was driven by deal ramp-ups in the Europe, Middle East and Africa region (up 19% QoQ).
The company reported yet another quarter of strong order intake of $201 million, implying 1.2 times book-to-bill (consistent over the last four quarters).
The Ebitda margin (pre-restricted stock unit and acquisition expense) remained stable at 18% despite selective wage hikes and one-time bonuses rendered to 85% of employees.
Margins were aided by the highest ever utilisation of 81% (up 190 basis point QoQ) and an increase in offshoring (up 100 basis point).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.