Coforge reports mixed financial results for Q1 FY25, with some areas of improvement and concern

Coforge, a leading IT software company, has recently announced its financial results for the quarter ending June 2024. The company has seen a negative performance in this quarter, with a score of -11 compared to -3 in the previous quarter.

Despite this, there are some positive aspects to Coforge’s financials. The company has recorded its highest net sales of Rs 2,400.80 crore in the last five quarters, with a consistent growth trend. Additionally, the debtors turnover ratio has also improved, indicating that the company has been able to settle its debtors faster.

However, there are some areas of concern for Coforge. The profit before tax (PBT) has fallen by 27.1% compared to the average of the previous four quarters. Similarly, the profit after tax (PAT) has also declined by 33.3% compared to the average of the previous four quarters. The interest cost has also increased, indicating higher borrowings by the company.

Moreover, the company’s ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The operating profit margin has also decreased, indicating a decline in the company’s efficiency. The PBT has also reached its lowest point in the last five quarters, with a negative trend in the near term.

Furthermore, the earnings per share (EPS) have also decreased, indicating a decline in profitability and lower earnings for shareholders. On a positive note, the non-operating income has increased, but it may not be sustainable in the long run.

Overall, Coforge’s financial performance for the quarter ending June 2024 has been negative, with some areas of improvement and some areas of concern. MarketsMOJO has given a ‘Hold’ call for the company’s stock based on these financials. Investors should carefully consider these factors before making any investment decisions.