Coforge - FY24 Guidance Reiterated Despite Adverse H2 Outlook: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.At Coforge Ltd.’s Investor Day 2023, the management has reiterated its FY24 USD revenue growth guidance of 13-16% YoY, but noted persistent pressure on client spending in industries like banking, financial services and insurance. The company continues to benefit from its sharp focus on execution (with a three-in-a-box model), along with relatively favourable demand in travel, transportation and hospitality) followed by Insurance (especially life and annuity). Despite the challenging environment, Coforge remains confident about generating incremental revenues from its clients, especially from 16 priority accounts, which it expects to contribute 45% of its incremental growth in FY24. On the other hand, management commentary indicated increasing concerns about deal closures and a shift in spending to cost optimisation over the last two quarters, although Coforge believes it is too small to be impacted by the slowdown. Coforge does not expect industry spending to improve over H2 FY24 versus H1, which adds to risk on FY25 revenue growth for the industry. It expects to improve gross margin by 50 basis point YoY in FY24, which it plans to reinvest in selling, general and administrative and deliver flat margin (pre-restricted stock units 18.3%) in FY24. It expects to slowly move to 35% gross margin over the medium term, resulting in 150-300 bp Ebitda margin expansion..Click on the attachment to read the full report:.IIFL Securities Shares Tumble Over 19% After SEBI Ban On Taking New Clients .DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Coforge - FY24 Guidance Reiterated Despite Adverse H2 Outlook: Motilal Oswal

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