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* Coforge Limited reported revenue growth from operation of 24.9% YoY at ?19,594 million during Q2-FY23 as against ?15,694 million in Q2-FY22. In Dollar terms, revenues were up 16% to $246.9. In Constant Currency terms, revenues were up 22%. Growth was led by Banking and Financial Service segment.

* The company reported EBITDA of ?3,371 million in Q2-FY23 as against ?2,747 million in Q2-FY22, growth of 22.7% YoY. EBITDA Margins for Q2-FY23 stood at ~17.2%. On a sequential basis EBITDA margin expanded ~142 basis points on back of higher Offshore Revenue, increase in utilization,fresher addition,operating efficiencies. The profit after tax (PAT) for Q2-FY23 came in at ?2,011 million as against ?1,467 million during Q2-FY22 recording a growth of 37.1% YoY.

* Growth was led by Banking and Financial Service (BFS) segment which grew ~14%(CC) sequentially during Q2-FY23. Insurance Segment registered growth of ~5.5% (CC) sequentially whereas the travel vertical saw a sequential growth of 4.9%. BFS, Insurance and Travel Segment contributed 31.7%, 23.2% and 19.3% of the Q2FY23 revenue resp. The management continue to be resilient on the demand front despite the ambient macroeconomic uncertainty.

* On geographical front, the EMEA region grew sequentially 12.9% (CC) and contributed 38.5% to the Revenue mix. Americas grew by 4.5% (CC) QoQ and contributed 51.3%. The rest of the world contracted by 7.3% (CC) sequentially and contributed 10.2% to the revenues. The decline in the rest of the world business was on account of contraction of the India business.

* The Offshore Revenue as a percentage of Global Revenue has increased to 49.8% during Q2FY23 as compared to Q2F21 where the offshore revenue was 36%. The Management believes that this has been a structural shift in the firm's operating profile and an important and sustainable long term margin improvement lever for the firm.

* Total order book executable over the next twelve months stood at $802 million as on 30st September 2022 as compared to $745 million during previous Quarter. Order intake during the quarter stood at $304 million, USA contributing $141 million, EMEA contributing $134 to the order intake.

* The total employees count for the company stood at 22,991 at the end of Q2FY23. Utilization during Q3FY22 improved to 77.3%. The last 12 months attrition during the quarter declined to 16.4% in Q2 from 18% in Q1.

* Management gave a guidance of 20% (CC) growth and adjusted EBITDA margin guidance in the range of 18.5% to 19% for FY23.

* We expect the growth momentum to continue supported by strong deal pipeline along with consistent large deal wins and healthy revenue and margin guidance. We maintain our Buy rating on the stock with target price of ?4,630 per share.

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