BENGALURU, Jan 20 (Reuters) – Indian IT services provider Coforge Ltd (COFO.NS) posted a better-than-expected 24% rise in third-quarter profit on Friday, boosted by large outsourcing deals across multiple industries .
India’s outsourcing industry is relying on orders from the US and Europe, businesses are actively shifting to cloud-based systems during the pandemic and are still looking for various cloud-based and digital migration services.
Coforge, which competes with big outsourcing firms such as Tata Consultancy Services (TCS.NS) and Wipro (WIPR.NS), said it won five large deals in the quarter, including one worth more than $50 million and two worth more than $30 million. Big deals in dollars.last quarter
Consolidated profit rose 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 expected a net income of 2.21 billion rupees, according to Refinitiv data.
Revenue from the U.S. and Europe, which account for about 80% of the company’s total, rose in the third quarter despite heightened concerns about growth in export markets, especially in Europe, and technology spending.
The company also said it reduced risk to its operating conditions as customer concentration declined, while churn fell 15.8% year-over-year from 16.3%
Its operating income rose 24 percent to 20.56 billion rupees on the back of big orders from insurance, banking and financial services firms.
However, the EBIT margin fell to 14.45 percent from 14.90 percent a year earlier.Staff costs and other expenses hit margins
($1 = 81.2400 Indian Rupees)
Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Dhanya Ann Thoppil
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