Q1 2025 Coforge Ltd Earnings Call Transcript
Key Points
- Coforge Ltd (BOM:532541) reported a 3.7% sequential constant currency (CC) growth excluding India, with a concurrent expansion in EBITDA by 210 basis points year-over-year (YoY).
- The company achieved a record headcount quarterly increase of 1,886, indicating strong hiring and growth potential.
- Operating cash flow significantly improved to $23.2 million for Q1 FY25, compared to negative $20.5 million in Q1 FY24.
- Order executable for the next 12 months increased by 19.3% YoY, reflecting strong future revenue potential.
- Coforge Ltd (BOM:532541) secured a 28% stake in Cigniti Technologies and expects to secure 51% to 54% ownership during Q2 FY25, indicating strategic expansion.
- India's revenue contribution declined by 30% quarter-over-quarter (QoQ) and now contributes only 3.8% to the overall global revenue.
- The financial services vertical showed weakness, which was attributed to a temporary normalization after a strong previous quarter.
- The company experienced a decline in segmental margins in the EMEA region, partly due to transaction-related expenses.
- There was a significant increase in non-operating cash and cash equivalents primarily due to QIP proceeds, indicating potential future financial obligations.
- The company deferred wage hikes to July 1, which, if implemented earlier, would have depressed margins by approximately 140 basis points.
Ladies and gentlemen, good day, and welcome to the Coforge Limited Q1 FY25 earnings conference call. (Operator Instructions) Please note this conference is being recorded. I now hand the conference over to Mr. Vikas Jadhav, Vice President, Investor Relations at Coforge Limited. Thank you, and over to you, sir.
You will have received our Q1 FY25 results. They are also available on the investor section of our website. So we have with us today, our CEO, Mr. Sudhir Singh; Chief Customer Success Officer John Speight; and CFO, Mr. Saurabh Goel.
We will begin the call with opening remarks from the management team and post that, we'll open the floor for the questions. Before we begin, please note that some of the statements made in today's discussion relating to the future should be construed as forward-looking statement and may involve risks and uncertainties. Please refer to the disclaimer to this effect in our Q1 FY25 earnings press release.
With that, I would now like to handover
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