Coforge (COFORGE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 42.8% year-over-year and 8.4% sequentially in INR terms, reaching INR 33,182 million ($397.1 million), with strong performance across all geographies and verticals.

• Adjusted EBITDA margin was 17.8%, up 41.2% year-over-year; normalized PAT rose 10.3% year-over-year to INR 2,680 million.

• Four large deals closed, including one in Cigniti, boosting the 12-month signed order book to $1.37 billion, up 40.1% year-over-year.

• Cigniti business fully integrated, contributing to sequential growth; Board approved Cigniti amalgamation, pending regulatory approvals.

• Acquisition of Xceltrait Inc. for $17.85 million announced, subject to closing conditions.

Financial highlights

• Q3 revenue reached $397.1 million, up 40.3% YOY in CC, 40.8% in USD, and 42.8% in INR.

• Adjusted EBITDA was $70.5 million (INR 5,890 million), up 15.4% sequentially and 39.3% YOY; margin expanded 122 bps sequentially to 17.8%.

• Consolidated net profit for Q3 FY25 was INR 2,669 million, compared to INR 2,428 million in Q3 FY24.

• Operating cash flow for Q3 was $47 million, up from $33.5 million YOY; YTD OCF at $86.5 million vs $33 million last year.

• Basic EPS (INR) at 32.3, adjusted basic EPS at 40.1 for Q3FY25.

Outlook and guidance

• Management expects robust and sustained growth in the coming year, supported by a strong deal pipeline and a 40% higher YOY order book.

• Margin expansion at Cigniti seen as a preview of further improvements; cross-sell synergies expected to reflect in Q4 or Q1 next year.

• Tailwinds expected from reversal of furlough impacts and declining ESOP costs, supporting margin expansion.

• Results for the current quarter and period are not directly comparable to the previous year due to the Cigniti acquisition.