BENGALURU (Reuters) - Indian IT services provider Coforge Ltd reported a better-than-expected 24% jump in third-quarter profit on Friday, aided by multiple large outsourcing deals across sectors.
India's outsourcing industry is riding on orders from the U.S. and Europe where businesses made an aggressive shift to cloud-based systems during the pandemic, and are still looking for various cloud and digital migration based services. Coforge, which competes with large outsourcing companies like Tata Consultancy Services and Wipro, said it won five large deals during the quarter, including one over $50 milllion and two large deals, worth over $30 million in the previous quarter Consolidated profit increased to 2.28 billion rupees ($28.06 million)in the third quarter ended Dec. 31 from 1.84 billion rupees a year earlier. Analysts on average had expected the company to report net income of 2.21 billion rupees, according to Refinitiv data.
Revenue from both the U.S. and Europe, which account for about 80% of the company's total revenue rose in the third quarter, despite rising concerns over growth and tech spending in export markets, especially Europe.
The company also said that it de-risked its operating profile with declining client concentration, while attrition fell 15.8% from 16.3% Y/Y
Its revenue from operations jumped 24% to 20.56 billion rupees, aided by the big orders from insurance, banking and financial services companies.
However, earnings margin before interest and taxes fell to 14.45% from 14.90% a year ago. Employee costs and other expenses have impacted the margin
($1 = 81.2400 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Dhanya Ann Thoppil)