View on Coforge Q1FY22 Result Update First cut by Mr. Piyush Pandey, YES Securities
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Below are views on Coforge Q1FY22 Result Update First cut by Mr. Piyush Pandey, Lead Analyst – Institutional Equities, YES SECURITIES.
Coforge Q1FY22 Result First Cut( Current Rating: BUY): Revenue growth above expectation; Margin slightly below estimate due to transient cost related to acquisition and cost related to ramp up of large deals
Reported 15% QoQ revenue growth in USD terms aided by the inorganic component as it completed the acquisition of SLK Global in the quarter. Organic growth was 7.6% QoQ in USD terms above the estimate.
EBITDA margin include RSU cost was down 210 bps QoQ to 15.1% led by wage hike, cost involved in ramping up large deals and transitionary cost on account of SLK global acquisition.
Deal book was strong at $318 mn( up 60% QoQ)
Added 11 new clients in the quarter same as Q4FY21Added 1,138 employees and 6,962 employees from SLK led total headcount reaching 20,491.
Utilisation dropped 400 bps QoQ to 77%, on account of more hiring in the quarter
Attrition increased by 210 bps QoQ to 12.6% for the quarter
Offshore revenue mix grew 1 pp QoQ to 40% as per the industry trend. Revenue contribution from Fixed price projects increased by 100 bps QoQ to 55%.
DSO increased by 1 days to 71 Days.
Overall strong result with organic revenue growth above expectation and deal booking remains robust. It is well on track to deliver high teen organic revenue growth for FY22. Currently, We have BUY rating on the stock
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