Coforge Limited · NSE:COFORGE
Coforge — Q2 FY2023 Earnings Presentation
16 slides from Coforge's earnings presentation, Oct 20, 2022
Slide 1: Investor Presentation Q2FY23
Investor Presentation Q2FY23 Oct 20, 2022
Slide 2: 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 3: Coforge Posts Strong Q2FY2023 Results
Coforge Posts Strong Q2FY2023 Results Financial Highlights Business Highlights ▪ On consolidated basis, Q2FY23 revenues were up 6.2% QoQ on ▪ Robust order intake of $304 Mn during the quarter constant currency basis ▪ Two large deals signed during the quarter (both $30+ Mn) ▪ Up 24.8% in INR terms a
Slide 4: Q2FY23 Revenue Up 7.1% QoQ and Adj. EBITDA Margin Up ~190 bps QoQ
Q2FY23 Revenue Up 7.1% QoQ and Adj. EBITDA Margin Up ~190 bps QoQ Revenue (INR Mn) 7.1% QoQ 24.8% YoY Adj. EBITDA (INR Mn) 23.0% YoY PAT (INR Mn) 37.1% YoY ₹ 18,294 ₹ 19,594 ₹ 3,596 ₹ 2,011 ₹ 15,694 ₹ 2,923 ₹ 3,012 ₹ 1,467 ₹ 1,497 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Revenu
Slide 5: Q2FY23 Revenues Mix
Well Diversified Business Portfolio with Increasing Offshoring Revenues Driving Profitability Expansion By Vertical By Service Offering By Geography 10.4% 10.5% 25.8% 10.2% 12.6% Q2FY23 Revenues Mix 31.7% 25.8% 51.3% 38.5% 19.3% 23.1% 23.2% 17.5% Banking & Financial Services (BFS) Insurance Americas
Slide 6: Very Significant Business Momentum Driving Robust Growth
Very Significant Business Momentum Driving Robust Growth FRESH ORDER INTAKE TCV ($ MN) $1,151 $748 $781 $646 $603 $619 $457 $507 FY17 FY18 FY19 FY20 FY21 FY22 H1FY22 H1FY23 New Clients Added 15 31 40 41 45 47 22 23 6
Slide 7: High Degree of Visibility Through Contracted Revenues and Repeat Business
High Degree of Visibility Through Contracted Revenues and Repeat Business ORDER BOOK EXECUTABLE OVER NEXT 12 MONTHS ($MN) $1,200 91% 93% 100% 93% 94% 100% 89% 90% 89% 89% $1,200 90% 90% $1,000 $1,000 80% 80% 70% 70% $800 $800 60% 60% $600 50% $600 50% 40% 40% $400 $802 $720 $400 30% $688 30% $468 $5
Slide 8: 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 142 45.3% 137 130 42.4% 39.0% 38.3% 115 106 34.4% 35.8% 34.0% 33.0% 90 97 80 100 92 73 88 32.8% 80 30.4% 28.3% 27.9% 66 24.3% 22.9% 23.0% 23.1
Slide 9: Hiring with Pace While Managing Low Attrition Levels
Hiring with Pace While Managing Low Attrition Levels Total Global Headcount LTM Attrition % (Excl. BPS) 22,742 22,991 22,500 22,130 1008 928 963 911 285 291 20,786 278 281 910 297 17.7% 18.0% 16.3% 16.4% 15.3% 21,294 21,494 21,692 20,938 19,579 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22
Slide 10: Select Other Achievements During the Quarter
Select Other Achievements During the Quarter Won India's Best Workplaces™ for Coforge was felicitated with ET Best Coforge was felicitated with The Women 2022 - Large (Top 100) for Tech Brands 2022 Economic Times Employee Excellence celebrating women all year round and 2022 contributing to the visio
Slide 11: Key Tenets of Coforge Growth Strategy
Key Tenets of Coforge Growth Strategy • FY22 total revenue growth of 38% and organic revenue growth of 25% Robust • Q2FY23 revenue growth of 6.2% QoQ in constant currency • FY22 Adj. EBITDA margin of 18.7% (margin expansion of 189 bps) Profitable • Q2FY23 Adj. EBITDA margin of 18.4% (up from 16.5% i
Slide 12: Appendix
Appendix 12
Slide 13: Consolidated Income Statement – Q2FY23 (INR Mn)
Consolidated Income Statement – Q2FY23 (INR Mn) Particulars Q2FY23 Q1FY23 QoQ% Q2FY22 YoY% Gross Revenues 19,594 18,294 7.1% 15,694 24.8% Gross Profit 6,277 5,555 13.0% 5,038 24.6% GM% 32.0% 30.4% 167 Bps 32.1% -6 Bps Selling / General And Administration 2,682 2,543 5.4% 2,115 26.8% SG&A to Revenue
Slide 14: Consolidated Income Statement – Q2FY23 (USD Mn)
Consolidated Income Statement – Q2FY23 (USD Mn) Particulars Q2FY23 Q1FY23 QoQ% Q2FY22 YoY% Gross Revenues 246.9 238.7 3.4% 212.8 16.0% Gross Profit 79.1 72.5 9.1% 68.3 15.8% GM% 32.0% 30.4% 167 Bps 32.1% -6 Bps Selling / General And Administration 33.8 33.2 1.8% 28.7 17.8% SG&A to Revenue % 13.7% 13
Slide 15: Other Key Metrics
Other Key Metrics Q2FY23 Q1FY23 Q2FY22 Q2FY23 Q1FY23 Q2FY22 DSO Position Hedge 70 72 66 USD 155.01 151.98 121.63 GBP 40.19 39.79 21.09 EUR 4.18 3.93 4.50 Q2FY23 Q1FY23 Q2FY22 Dollar Rate Q2FY23 Q1FY23 Q2FY22 Outstanding Rupee Period Closing Rate 81.38 79.03 74.19 Average Hedges 79.78 78.57 76.40 Rat
Slide 16: Thank You
Thank You End of Document Coforge