Coforge Q4 Review - Strong Guidance; Valuation Leaves Little Room For Upside: Motilal Oswal
Employees wear headsets while working at call center in Kolkata, India (Photograph: Taylor Weidman/Bloomberg)  

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:

Motilal Oswal Coforge Q4FY21 Result Udpate.pdf

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