Coforge Ltd

The company providing global IT solutions did not do too well for Q3FY13. It showed a 19% YoY growth in revenue at Rs.514 crore. Operating profit was up 4% at Rs.81 crore. But operating margin dropped significantly by 222 bps to 15.8%. It ended the quarter with a net profit at Rs.56 crore, down 12.5%. But QoQ, net profit showed a rise of 30%.

Business in the US contributed to 37% of revenues, EMEA improved to 40% of the total revenue share, while the revenue share from APAC and India remained at 23%. Among industry segments, Travel & Transport remained at 42% of revenue share, BFSI stood at 31% while Manufacturing/Distribution and Government contributed 6% and 8% of revenue share respectively. There was softness in the BFSI segment due to overall economic uncertainties with a major catastrophe like hurricane Sandy causing losses among reinsurers. $83 Mn of fresh orders was secured during the quarter which included a $10 Mn renewal in Travel & Transport, leading to $242 Mn of order book executable over the next 12 months. Four new clients were added which included two from Manufacturing and one each in Travel & Transportation and Government. This includes a $10 Mn contract for providing turn-key solution for the Registration and Stamps department of a large state. This project is replicable across all states. 265 net additions of staff took place during the quarter taking the total headcount to 7882 at the end of Q3FY13.