Shares of Coforge Ltd. surged by almost 3% to touch a day’s high of Rs 6,335 on 23 July after the company announced that it maintained its margin guidance for the financial year 2024-25.

The topline increased by 1.8% quarter-on-quarter to Rs 2,400.8 crore for April to June, up from Rs 2,358.5 crore in the March quarter. The bottom line declined 40% quarter-on-quarter to Rs 133 crore in Q1, down from Rs 223.7 crore in the previous quarter.

The EBITDA margin for the quarter was 17%. Margins declined due to Rs 79.5 crore in expenses related to the acquisition of Cigniti.

The company’s CEO, Mr. Sudhir Singh, expects the company to achieve a 50 basis points higher margin by the end of the first half of the year compared to the first half of last year.

This increase is expected to help Coforge meet its guidance of a 50 basis point adjusted EBITDA expansion for this fiscal year over last year.

He also stated that the company is committed to delivering robust growth across both Coforge and Cigniti in the short and long term.

The cash flow from operations for the June quarter was $23.2 million. The firm reported a strong order intake of $314 million. This also marks the 10th consecutive quarter of $300+ million deal wins.

FY25 started strong with a 210 basis point increase in EBITDA margins and operating cash flow (OCF) of $23.2 million.

The board of the company declared an interim dividend of Rs 19 per equity share for FY 2024-25.

2 August, 2024 shall be the record date to determine eligible shareholders, with dividend payment within 30 days of the declaration.

At 10:53 AM, the shares of Coforge Ltd. were trading 1.40% higher at Rs 6,156.60 on BSE.

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