Coforge Limited · NSE:COFORGE
Coforge — Q4 FY2023 Earnings Presentation
31 slides from Coforge's earnings presentation, Apr 27, 2023
Slide 1: Cover letter to BSE and NSE
C forge April 27, 2023 The Manager, The General Manager, Department of Corporate Services Department of Corporate Services BSE Limited The National Stock Exchange of India Floor 25, P.J. Towers, Limited Dalal Street, Mumbai - 400 00 I Exchange Plaza, BSE Scrip code- [532541] Plot No. Cl I, G Block,
Slide 2: Coforge Crosses US$ 1 Billion Revenue Milestone
Coforge Crosses US$ 1 billion Revenue Milestone; Company to gift an Apple iPad to each of it’s 21,000+ employees to celebrate the milestone Q4 Revenue up 4.7% QoQ in CC terms and Adj. EBITDA % up by 109 bps QoQ Beats FY23 Revenue Growth guidance in CC terms FY23 Revenue up 24.6% in INR terms FY23 hi
Slide 3: FY24 guidance and About Coforge
• Coforge enters strategic partnership with Denodo, to offer data modernization for banks and financial services organizations • Coforge launches Quasar eBOL for the logistics sector. It’s an edge compute/cloud-based platform solution which would be used for extraction and process automation of unst
Slide 4: Safe Harbor and Disclaimer
Safe Harbor Certain statements in this release are forward-looking statements. The business involves various risks, and uncertainties that could result in the actual results to differ materially from those indicated here. All forward looking statements made herein are based on information presently
Slide 5: Consolidated Profit and Loss Statement Q4FY23 (INR Mn)
Coforge Limited Consolidated Profit and Loss Statement 31st March 2023 INR Mn Q4FY23 Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% Particulars Excl One-Off Reported Reported Excl One-Off Reported Excl One-Off Gross Revenues 21,700 21,700 20,558 5.6% 17,429 24.5% Direct Costs 14,306 14,306 13,698 4.4% 11,620 23.1%
Slide 6: Consolidated Profit and Loss Statement Q4FY23 (USD Mn)
Coforge Limited Consolidated Profit and Loss Statement 31st March 2023 USD Mn Particulars Q4FY23 Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% Excl One-Off Reported Reported Excl One-Off Reported Excl One-Off Gross Revenues 264.4 264.4 251.7 5.0% 232.4 13.8% GM% 34.1% 34.1% 33.4% 71 Bps 33.3% 75 Bps Adj EBITDA 51.
Slide 7: Consolidated Profit and Loss Statement FY2023 (INR Mn)
Coforge Limited Consolidated Profit and Loss Statement 31st March 2023 INR Mn Particulars FY2023 FY2023 FY2022 YoY% Excl One-Off Reported Reported Excl One-Off Gross Revenues 80,146 80,146 64,320 24.6% GM% 32.5% 32.5% 32.0% 55 Bps Adj. EBITDA 14,649 14,649 12,056 21.5% Adj. EBITDA% 18.3% 18.3% 18.7%
Slide 8: Consolidated Profit and Loss Statement FY2023 (USD Mn)
Coforge Limited Consolidated Profit and Loss Statement 31st March 2023 USD Mn Particulars FY2023 FY2023 FY2022 YoY% Excl One-Off Reported Reported Excl One-Off Gross Revenues 1,002 1,002 866 15.6% GM% 32.5% 32.5% 32.0% 55 Bps Adj EBITDA 183.1 183.1 162.4 12.7% Adj EBITDA% 18.3% 18.3% 18.7% -47 Bps A
Slide 9: Consolidated Balance Sheet 31st March 2023
Coforge Limited Consolidated Balance Sheet 31st March 2023 INR Mn As at Mar 31 As at Dec 31 As at Mar 31 As at Mar 31 As at Dec 31 As at Mar 31 Particulars Particulars 2023 2022 2022 2023 2022 2022 Equity 611 611 609 Fixed Assets 6,820 6,608 5,928 Reserves & Surplus 30,214 29,990 26,722 Capital Work
Slide 10: Analyst Data Sheet: Revenue, Profitability, Order Book
Analyst Data Sheet Period Ended March 31, 2023 Revenue and Revenue Growth Q4FY23 Q3FY23 Q4FY22 FY2023 FY2022 Q-o-Q CC Revenue Growth 4.7% 3.7% 5.0% Revenue (USD Mn) 264.4 251.7 232.4 1,001.7 866.5 Q-o-Q Growth 5.0% 2.0% 4.9% Y-o-Y Growth 13.8% 13.6% 35.0% 15.6% 38.0% Revenue (INR Mn) 21,700 20,558 1
Slide 11: Analyst Data Sheet: Client and People Data
Analyst Data Sheet Period Ended March 31, 2023 New Clients Added Q4FY23 Q3FY23 Q4FY22 FY2023 FY2022 Americas 6 5 10 22 30 EMEA 2 2 2 12 14 Rest of World 2 4 - 10 3 Total 10 11 12 44 47 Repeat Business % 92% 93% 93% 92% 93% Client Data Client Concentration (% of Revenue) Q4FY23 Q3FY23 Q4FY22 FY2023 F
Slide 12: Investor Presentation Q4FY23
Investor Presentation Q4FY23 April 27, 2023
Slide 13: Safe Harbor and Disclaimer
Safe Harbor and Disclaimer Forward Looking Statements Safe Harbor This presentation contains forward-looking statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “
Slide 14: Coforge Crosses US$ 1 Bn Revenue Milestone, Beats Growth guidance
Coforge Crosses US$ 1 Bn Revenue Milestone, Beats Growth guidance FY23 – Financial Highlights FY23 – Business Highlights ▪ On consolidated basis, FY23 revenues were up 22.4% YoY on a constant currency basis. ▪ Robust total order intake of US$ 1,265 Mn during the year ▪ Revenue for the year was INR 8
Slide 15: Q4FY23 Revenue up 5.6% QoQ in Reported and 4.7% in CC terms
Q4FY23 Revenue up 5.6% QoQ in Reported and 4.7% in CC terms Q4FY23 – Financial Highlights Q4FY23 – Business Highlights ▪ On consolidated basis, Q4FY23 revenues were up 4.7% QoQ on a ▪ Robust order intake of US$ 301 Mn during the quarter constant currency basis. ▪ Two large deals signed during the qu
Slide 16: FY23 – A Year of achieving US$ Billion-dollar Revenue Milestone
FY23 – A Year of achieving US$ Billion-dollar Revenue Milestone Revenue (INR Mn) 24.6% Adj. EBITDA (INR Mn) 21.5% PAT* (INR Mn) 22.7% ₹ 80,146 ₹ 14,649 ₹ 8,117 ₹ 64,320 ₹ 12,056 ₹ 6,617 FY22 FY23 FY22 FY23 FY22 FY23 Revenue ($Mn) 15.6% Adj. EBITDA ($Mn) 12.7% PAT* ($Mn) 14.0% $1,002 $183.1 $101.5 $8
Slide 17: Revenue up 5.6% QoQ and 24.5% YoY in INR terms
Revenue up 5.6% QoQ and 24.5% YoY in INR terms Revenue (INR Mn) 5.6% QoQ 24.5% YoY Adj. EBITDA (INR Mn) 19.6% YoY PAT* (INR Mn) 12.1% YoY ₹ 20,558 ₹ 21,700 ₹ 4,244 ₹ 2,282 ₹ 2,327 ₹ 3,549 ₹ 3,797 ₹ 2,077 ₹ 17,429 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Revenue ($Mn) 5.0% QoQ 1
Slide 18: Well Diversified Business Portfolio with Increasing Offshoring Revenues
Well Diversified Business Portfolio with Increasing Offshoring Revenues Vertical Mix Location Mix (IT Revenues Only) BFS 28% 31% 26% 31% Insurance 53% 49% 50% Onsite 56% TTH 26% 28% 22% 23% Others 20% 19% 19% 19% 47% 51% 44% 50% Offshore 27% 28% 27% 28% Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY2
Slide 19: Very Significant Business Momentum Driving Robust Growth
Very Significant Business Momentum Driving Robust Growth FRESH ORDER INTAKE TCV ($ MN) $1,265 $1,153 $748 $781 $646 $457 $507 FY17 FY18 FY19 FY20 FY21 FY22 FY23 New Clients 15 31 40 41 45 47 44 Added 8
Slide 20: High Degree of Visibility Through Contracted Revenues and Repeat Business
High Degree of Visibility Through Contracted Revenues and Repeat Business ORDER BOOK EXECUTABLE OVER NEXT 12 MONTHS ($MN) $1,200 91% 93% 92% 100% 89% 90% 89% 89% 90% $1,000 80% 70% $800 60% $600 50% 40% $869 $400 $720 30% $468 $520 20% $200 $339 $390 $320 10% $0 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 21: De-Risked Operating Profile with Declining Client Concentration
De-Risked Operating Profile with Declining Client Concentration While Increasing Large Account Relationships Top Clients Revenue Contribution Clients by Size 145 45.3% 137 42.4% 39.0% 38.3% 115 106 34.4% 35.5% 35.0% 35.5% 34.0% 90 101 80 100 73 88 80 32.8% 30.4% 66 28.3% 27.9% 24.3% 60 22.9% 23.2% 2
Slide 22: Best-in-Industry Attrition Levels Testament to Coforge Culture
Best-in-Industry Attrition Levels Testament to Coforge Culture Total Global Headcount LTM Attrition % (Excl. BPS) 22,991 23,224 22,500 22,742 22,505 1008 1059 928 963 291 1035 350 278 285 317 17.7% 18.0% 16.4% 15.8% 14.1% 21,294 21,494 21,692 21,815 21,153 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q
Slide 23: Select Other Achievements During the Quarter
Select Other Achievements During the Quarter • Received an award for the ‘Best Use of (AI) Artificial Intelligence in the BFSI sector’ at the Financial Express-FUTECH Awards 2022. Recognized for the application of AI in credit risk scoring. In addition, we won the award from MuleSoft for the ‘Breakt
Slide 24: Key Tenets of Coforge Growth Strategy
Key Tenets of Coforge Growth Strategy • FY23 total revenue growth of 24.6% and CC revenue growth of 22.4% Robust • Q4FY23 $ revenue growth of 5.0% QoQ and 4.7% QoQ in constant currency (CC) • FY23 Adj. EBITDA margin at of 18.3% Profitable • Q4FY23 Adj. EBITDA at INR 4,244 Mn, Margin at 19.6%, up 109
Slide 25: Appendix
Appendix 14
Slide 26: Consolidated Income Statement – Q4FY23 (INR Mn)
Consolidated Income Statement – Q4FY23 (INR Mn) Q4FY23 Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% Particulars Excl One-Off Reported Reported Excl One-Off Reported Excl One-Off Gross Revenues 21,700 21,700 20,558 5.6% 17,429 24.5% Direct Costs 14,306 14,306 13,698 4.4% 11,620 23.1% Gross Profit 7,394 7,394 6,860
Slide 27: Consolidated Income Statement – Q4FY23 (USD Mn)
Consolidated Income Statement – Q4FY23 (USD Mn) Particulars Q4FY23 Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% Excl One-Off Reported Reported Excl One-Off Reported Excl One-Off Gross Revenues 264.4 264.4 251.7 5.0% 232.4 13.8% Direct Costs 174.3 174.3 167.7 3.9% 154.9 12.5% Gross Profit 90.1 90.1 84.0 7.3% 77.5
Slide 28: Consolidated Income Statement – FY23 (INR Mn)
Consolidated Income Statement – FY23 (INR Mn) Particulars FY2023 FY2023 FY2022 YoY% Excl One-Off Reported Reported Excl One-Off Gross Revenues 80,146 80,146 64,320 24.6% GM% 32.5% 32.5% 32.0% 55 Bps Adj. EBITDA 14,649 14,649 12,056 21.5% Adj. EBITDA% 18.3% 18.3% 18.7% -47 Bps Acquisition related exp
Slide 29: Consolidated Income Statement – FY23 (USD Mn)
Consolidated Income Statement – FY23 (USD Mn) Particulars FY2023 FY2023 FY2022 YoY% Excl One-Off Reported Reported Excl One-Off Gross Revenues 1,002 1,002 866 15.6% Direct Costs 676 676 589 14.7% Gross Profit 326 326 277 17.6% GM% 32.5% 32.5% 32.0% 55 Bps Selling / General And Administration 143 143
Slide 30: Other Key Metrics
Other Key Metrics Q4FY23 Q3FY23 Q4FY22 Q4FY23 Q3FY23 Q4FY22 DSO Position (in Million) Hedge 61 73 63 USD 214.94 159.30 129.60 GBP 83.80 44.23 22.24 EUR 7.56 4.40 4.22 Q4FY23 Q2FY23 Q4FY22 Dollar Rate Q4FY23 Q3FY23 Q4FY22 Outstanding Rupee Period Closing Rate 82.11 82.73 75.90 Average Hedges 82.76 81
Slide 31: Thank You
Thank You End of Document Coforge