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Highlights
- Sales over the Year and quarter: The company experienced a substantial growth of 8.1 % in the past year, substantial increase in net sales/revenue by 1.79 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 58.75 %. Marginal increase in other income during this quarter, up by 156.57%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Coforge Limited. Profit dropped by -20.72 % Year to Year, Coforge Limited’s profitability dropped by -39.22 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -22.65 % Year to Year. EPS decreased by -42.2 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2221 Cr | Rs. 2358.5 Cr | Rs. 2400.8 Cr | + 1.79 % | + 8.1 % |
| Expenses | Rs. 1915 Cr | Rs. 1972.8 Cr | Rs. 2107.5 Cr | + 6.83 % | + 10.05 % |
| Operating Profit | Rs. 306 Cr | Rs. 385.7 Cr | Rs. 293.3 Cr | -23.96 % | -4.15 % |
| OPM % | 13.78 % | 16.35 % | 12.22 % | -4.13 % | -1.56 % |
| Other Income | Rs. 16 Cr | Rs. 9.9 Cr | Rs. 25.4 Cr | + 156.57 % | + 58.75 % |
| Interest | Rs. 22.1 Cr | Rs. 37 Cr | Rs. 32.5 Cr | -12.16 % | + 47.06 % |
| Depreciation | Rs. 75.7 Cr | Rs. 84.6 Cr | Rs. 81.5 Cr | -3.66 % | + 7.66 % |
| Profit before tax | Rs. 224.2 Cr | Rs. 274 Cr | Rs. 204.7 Cr | -25.29 % | -8.7 % |
| Tax % | 21.63 % | 19.75 % | 31.95 % | + 12.2 % | + 10.32 % |
| Net Profit | Rs. 175.7 Cr | Rs. 229.2 Cr | Rs. 139.3 Cr | -39.22 % | -20.72 % |
| EPS in Rs | Rs. 26.54 | Rs. 35.9 | Rs. 20.78 | -42.12 % | -21.7 % |
Today, we’re looking at Coforge Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 8.1 %. However, it did see a marginal increase of 1.79 % from the previous quarter. Expenses ticked up slightly by 6.83 % quarter-on-quarter, aligning with the annual rise of 10.05 %. Operating profit, while down -4.15 % compared to last year, faced a quarter-on-quarter dip of -23.96 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.56 %, but a shrinkage of -4.13 % sequentially. Other income rose by 156.57 % compared to the last quarter, despite an annual growth of 58.75 %. Interest expenses dropped significantly by -12.16 % from the previous quarter, yet the year-over-year increase remains at a moderate 47.06 %. Depreciation costs fell by -3.66 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 7.66 %. Profit before tax declined annually by -8.7 % but saw a reduction from the preceding quarter by -25.29 %.
Tax expenses as a percentage of profits increased slightly by 10.32 % compared to last year, with a more notable quarter-on-quarter increase of 12.2 %. Net profit fell by -20.72 % year-on-year but witnessed a -39.22 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -21.7 % but a quarterly fall of -42.12 %. In summary, Coforge Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2221 Cr | Rs. 2358.5 Cr | Rs. 2400.8 Cr | + 1.79 % | + 8.1 % |
| Expenses | Rs. 1915 Cr | Rs. 1972.8 Cr | Rs. 2107.5 Cr | + 6.83 % | + 10.05 % |
| Operating Profit | Rs. 306 Cr | Rs. 385.7 Cr | Rs. 293.3 Cr | -23.96 % | -4.15 % |
| Net Profit | Rs. 175.7 Cr | Rs. 229.2 Cr | Rs. 139.3 Cr | -39.22 % | -20.72 % |
| EPS in Rs | Rs. 26.54 | Rs. 35.9 | Rs. 20.78 | -42.12 % | -21.7 % |
In reviewing Coforge Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 8.1 % year-on-year growth, however, there was a minor increase of 1.79 % from the previous quarter. Expenses rose by 10.05 % compared to the previous year, with a 6.83 % increase quarter-on-quarter. Operating Profit dropped by -4.15 % annually, and saw a -23.96 % decrease from the last quarter.
Net Profit showed yearly decrease of -20.72 %, and experienced a -39.22 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -21.7 % annually, however dipped by -42.12 % compared to the last quarter. In essence, while Coforge Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
