Coforge Ltd
The stock had hit a new 52-week high yesterday at Rs.399 but today, it has opened in the red, reacting to the not-so-encouraging Q3 numbers. The company’s consolidated net profit for Q3FY14 fell 15% QoQ and this was on account of loss in other income as a result of revaluation of foreign currency assets and liabilities due to period end exchange difference. Its revenue declined 2% at Rs.587 crore and this was because of reduced purchase for resale (PFR) in domestic Government business. Revenue from services grew 4% sequentially.
During the quarter the company secured a US$ 300mn deal from a top BFSI client for a period of 10 years. This large engagement includes renewal and vendor consolidation with respect to maintenance support and operation around the client’s existing platform as well as major contribution to the development and implementation of its new platform. BFSI expanded 8% sequentially representing 35% of revenues. Travel and Transportation grew 2% sequentially during the quarter contributing to 38% of the total revenues. Other segments like Manufacturing/Distribution and Govt contributed to 7% and 6% of revenues respectively. US geography showed a sequential growth of 7.9% contributing to 44% of revenues during the quarter, and EMEA grew by 4.5% contributing 38% of revenues. Other geographies collectively now contribute to 18% of revenues. It added four new clients during the quarter. Total employee strength was at 8,160 as at 31st Dec 2013.