At 01:49 pm, the S&P BSE IT index was up 1.6 per cent at 26,833 points, as compared to 0.45 per cent gain in the S&P BSE Sensex. The IT index had hit a record high of 28,385.91, on April 12.
Coforge's stock surpassed its previous high of Rs 3,222, touched on April 16, after the company today said it has reported continued growth-led momentum, with consolidated revenue growing by 7.1 per cent in dollar terms to $172.1 million during January-March quarter (Q4FY21). In constant currency terms, revenue grew 5.1 per cent over the preceding quarter. In rupee terms, revenue was up by 6.0 per cent sequentially and up by 13.7 per cent year-on-year to Rs 1,261 crore during Q4FY21.
The company’s profit after tax (PAT) for the quarter increased 17 per cent year-on-year to Rs 133 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin (before ESOPs and acquisition-related costs) for the quarter under review was stable at 18 per cent as growth-driven operating leverage was able to offset the impact of a one-time bonus payout during the quarter to a majority of employees who provided extraordinary support to the firm’s operations and business during the pandemic, Coforge
said in a press release.
said it is planning for an organic growth of at least 17 per cent in CC terms during FY22 and an expansion of EBITDA margin (excluding ESOP and acquisition-related costs) from 18 per cent in FY21 to 19 per cent in FY22. The company further said it also sustained its strong order intake momentum during the quarter with two significant deal wins. Fresh business of $201 million was secured during the quarter under review, resulting in the order book executable over the next twelve months expanding to $520 million.
Among other stocks, Wipro
rallied nearly 5 per cent to Rs 513.35, surpassing its previous high of Rs 511.95, touched on April 30. In the past one month, the stock has outperformed the market, by gaining 20 per cent after the company reported a healthy IT services revenue growth and margins in Q4FY21. After a muted growth over the last few years, Wipro
delivered strong results for a third quarter in a row led by a healthy volume growth. After a steep decline in Q1FY21, the company bounced back sharply.
is expected to deliver strong revenue growth of 14.8 per cent in FY2022E with strong deal wins, healthy deal pipeline, change in go-to-market strategy, higher spending on cloud and digital, and inorganic revenue contribution. On the margin front, Q1FY2022 margins would be impacted by wage hike to senior staff (effective from June 2021), ramp-up of large deals, investments in front-line capabilities, and skill-based premium. Further, the integration of Capco’s acquisition will dilute Wipro’s IT EBIT margin by 2 per cent in 2022E. We expect margin headwinds to be partially offset by strong revenue growth, higher offshoring revenue, work-from-home (WFH) efficiencies, and focus on cost synergies,” brokerage firm Sharekhan said in stock update.
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