Questions across 5 calls

Sudhir Singh

Firm not listed in source transcripts

Coforge Limited

Coforge Limited CC-Mar25.pdf · 2025-05-05

Thank you moderator. Ladies, gentlemen, thank you very, very much for joining us today as we share our Q4 and our fiscal year 2025 performance as also the outlook for fiscal year 2026. Fiscal year 2025 was a landmark year for the firm where we have recorded 31.5% US dollar denominated growth. In addition, Q4 again has been a landmark quarter for the firm because in this quarter we booked $2.1 billion of orders in a single quarter. And we have signed five large deals paving the way for what is likely to be a very strong growth year in fiscal year 2026 as well. With that preamble and before I run through our commentary, I want to share an important reminder with you. Almost a year back during the last year annual investor call, we made three assertions. Those three assertions and our performance against those assertions bears remembering as you listen to our commentary today. Assertion number one a year back, we had shared was that what we were making that we were making a contrarian yet high conviction bet by acquiring Cigniti. Assertion number two that we made a year back was , we had shared that we were stopping the process of providing annual guidance not because we were unsure of our performance in fiscal year 2025, but because in fact we were very sure that we would continue to drive robust and sustained growth in fiscal year 2025. And as you can see, we have. And finally, assertion number three a year back that we made was, we had shared that despite the bleak demand outlook painted by some of our peers and analysts for fiscal year 20 25, we had said that we believe that there were definite areas where a focused firm could pivot and drive significant growth and we have. We are pleased that our performance was exactly in line with the three assertions that we made a year back on this same call. I shall call out the full year and the quarterly performance in order. A few highlights before we dive into the details. It is not just the 31.5% growth in fiscal year 2025 that is remarkable, but even more important has been the quality of that growth. Our growth in fiscal year 20 25 has been large deals led and has come off the back of 14 large deals signed through the year. The deal momentum has kept accelerating every quarter over the last four quarters with five large deals signed in the most recent quarter. Our order book at the end of fiscal year 2025 is now 47.7% higher than it was at the same time last year. The growth again has been balanced. Every industry business unit of Coforge has performed well. Every service line of Coforge has done well. Every geo that Cof orge operates in has grown and all client cohorts including top five , top 10 , and top 20 clients have grown. As I noted earlier, in Q 4 we have booked $2.1 billion of orders which is equal to the entire order book that we did in all of fiscal year 2024. Therefore, we look at the coming quarter and the coming year with great confidence. With that preamble, I shall now walk you through the annual performance. QUARTERLY PERFORMANCE – REVENUE ANALYSIS Let us start with annual performance revenue analysis. In fiscal year 2025, we registered a consolidated revenue of $ 1.445 billion. We clocked a revenue growth of 31.5% in US dollar terms, 33.8% in Indian rupee terms, and 32% in CC terms. Our ability to drive growth in tough macros was aided significantly by growth across each one of the industry verticals that we operate in. The growth was led by the travel vertical which saw 33.7% Y -O-Y growth followed by government outside India vertical which saw a 27.1% Y-O-Y growth. The banking financial services vertical through the year grew by 20.4% and the insurance vertical grew 13.3%. Other emerging verticals, including healthcare and retail grew by 67.9% in dollar terms. On the margin front annual performance commentary is as follows. The adjusted EBITDA margin came in at 18% for the year. Our performer adjusted EBITDA including Cigniti was 17% in fiscal year 2024 and the margin improvements have borne clear fruit. Our reported EBITDA was at 13% and our margin improvement efforts have assured us that our reported EBIT shall expand materially in fiscal year 2026. QUARTERLY PERFORMANCE – MARGINS AND OPERATING PROFITS Moving on quickly to quarterly performance revenue analysis, I am pleased to report that following a 8.4% CC sequential growth in Q3, t he firm has registered a sequential revenue growth of 3.4% in CC terms in Q4. In USD and INR terms, the sequential growth was 3.3% and 4.7% respectively. The growth during this quarter was led by the BFS vertical which has grown 13.4% sequentially in dollar terms. Our travel vertical grew 7.5% sequentially and the government outside India vertical grew 8.5% sequentially in dollar terms. Other emerging verticals declined 8.3% Q-o-Q in dollar terms. Our top five clients and our top 10 clients declined 5.9% and 4.6% quarter on quarter. You will recall they had grown 13.5% and 14.4% sequentially last quarter. It is important to note that our top five clients and our top 10 clients have grown by 12.1% and 15.1% respectively over the same quarter last year and these relationships continue to be very robust. We expect very robust growth to return to this client cohort in the coming quarters and through fiscal year 2026. ORDER INTAKE Order intake commentary is as follows. Q 4 was an outstanding; I repeat absolutely outstanding quarter from both an order intake and the number of large deal closure perspective. During the quarter we signed five large deals. The velocity and median size of large deals signed by Coforge has been increasing over the years and I have remarked upon it often. I shall reflect more upon this in my concluding remarks. The total order intake during Q4 was an exceptional $2,136 million. We have closed fiscal year 2025 with the highest ever recorded order intake of $3.5 billion and this metric is up 75.1% year on year. The executable order book, which reflects the total value of locked orders over the next 12 months, now stands at a record $ 1.5 billion. This number some of you might recall was only $1 billion a year back and has witnessed a 47.7% growth. PEOPLE On the people front, our total headcount at the end of Q 4 stood at 33,497. We saw a net people addition of 8,771 people during the year and 403 during the quarter. Utilization during the quarter stood at 82%. Last 12 month iteration for the quarter fell further and is now at 10.9%. We remain as always one of the lowest iteration firms across the industry. With those comments, I will now hand over the call to John Speight, Chief Customer Success Officer of Coforge for providing insights into our operations and capability creation. Over to you, John. DELIVERY OPERATIONS & CAPABILITY BUILD

Thank you Saurabh. We are entering fiscal year 2026 with a record signed order book, which is 47.7% higher than where it was at the same time last year. Let us start with that for o utlook. Equally importantly, our pipeline of large deals, where we have high conviction that they will be closed in the short term is unimpaired. For more than eight years, despite the changing macros, both the number and median size of large deals signed by our sales engine has continued to increase year on year that trend despite the uncertain macros the industry is currently facing will continue to be on track. The Sabre $1.56 billion deal that we announced through the quarter has seen an impeccable transition and a ramp -up so far. We believe that more than the robustness of our growth, what is truly remarkable is the balanced nature of our growth across all cuts that is across geo units, across industry vertical units, across service lines. Our confidence in sustained growth in the future rides off the fact that there is no over -reliance on any one growth vector. All vectors including geo -based units, industry-based units, and service lines of firing, they are all not just growing, but they are all growing robustly. Finally, as we conclude the year, we would like to reflect upon the three key reasons why t eam Coforge has delivered robust and sustained growth over eight years. Remember eight years, this is not one, two or three years, including during years when the industry has faced headwinds. Those very reasons give us confidence in our quest to be the industry growth leader in fiscal year 2026 as well. Reason number one out of those three reasons is an execution discipline and an execution intensity that is uniquely our own. For eight years, the three -step iterative process of plan, execute, debrief . Plan, execute, debrief . Plan, execute, debrief has been repeated by every function and every unit of Coforge till it has now become hard-coded in the DNA of our firm. Reason number two is our outsized focus on driving growth essentially through solution based, proactive, large managed services deals. This large deals -based growth approach has meant that our teams count more on wallet share expansion and not client budget expansion as the primary arc for expanding our revenue. We enter every downturn with a strong signed order book and a high conviction short -term pipeline ahead of us, allowing us to outperform irrespective of the macros. Reason number three is our unwavering eight -year dedication to building deep differentiated architect pools and SME led industry -specific engineering competence. We believe as things stand today after eight years , we are one of the most credible challengers today in the financial services tech partner landscape and we further believe that we have now entered the leaders box in the travel services tech partner landscape. Our government business outside India and our healthcare business is being built up painstakingly following the exact same approach. Each three of these aspects, the execution intense DNA, the large deal oriented sales mindset, and the industry led engineering focus cannot be built overnight. They take years to build, but once built, they become a lasting growth pillar which does not just sustain high growth, but actually accelerates growth every year. Our growth outlook for fiscal year 2026, despite the uncertain macros that the industry faces is very robust. We believe very significant growth in fiscal year 2026 will be accompanied as Saurabh said by a simultaneous and a material expansion in reported EBIT. With that ladies, gentlemen, I conclude my prepared remarks and Saurabh, John, and I look forward to hearing your comments and addressing your questions. Moderator all yours.

Coforge Limited CC-Dec24.pdf · 2024-12-27

Thank you. A very good morning and a very good evening to you across the world, ladies and gentlemen. Thank you for joining us today as we share our quarter three performance and the business outlook. Today, given the performance of team Coforge in Q3 , it is my privilege to start the commentary with almost the same sentence that I had used at the beginning of the last quarter's call. Here goes that simple yet powerful sentence once again for the second quarter running. This quarter has been an exceptionally strong quarter for the firm. In Q3, a quarter normally regarded as a seasonally weak quarter for the industry, the firm has registered a sequential CC growth of 8.4% and a Y-O-Y CC growth of 40.3%. The Cigniti business has grown 3.5% CC sequentially and the non-Cigniti business has grown 9.4% CC sequentially. I wish to point out that the Cigniti business had already been fully consolidated in Q2 after we had assumed operational control of that business in the beginning of July itself. What makes this quarter's growth performance even more remarkable is the concurrent expansion in EBITDA. The adjusted EBITDA increased by 122 bps sequentially, even as our revenue rose 8.4% sequentially again. In addition to both strong in quarter revenue growth and margin expansion, the firm has also closed four large deals during the quarter, including one in the Cigniti client portfolio. With that, our 12- month signed order book now stands at $1.37 billion dollars which is up 40.1% from the same period last year. With thi s quarter's performance ladies and gentlemen, you will note that in less than two years and I repeat less than two years, the revenue run rate of Coforge has grown almost 60% from $1 billion to approximately $1.6 billion. Our inexorable and very rapid march to the next $2 billion milestone is not just unhindered, but it is actually picking up even more pace. The quarter also marked the complete operational integration of the Cigniti business, which has not just seen robust growth, but has also seen its EBITDA margins jump more than 600 bps to 17.3% from around 11% just three quarters back. With that preamble, I shall now walk you through the details of the quarterly performance. QUARTERLY PERFORMANCE – REVENUE ANALYSIS Starting off with the revenue analysis, I am pleased to report that during Q3 , the firm registered revenue of $397.1 million. This represents a year-on-year revenue growth of 40.3% in CC terms, 40.8% in US dollar terms and 42.8% in Indian rupee terms, respectively. We believe that more than the robustness of our growth, what is really truly remarkable is the balanced nature of the growth across all cuts. That is, across all geo units, all industry verticals and every service line of ours. Our confidence in sustained growth in the future rides off the fact that there is no over reliance on any one growth vector , all vectors and I mean all vectors, including geo-based units, industry-based units, service lines, client-size cohorts are all firing. And they are all not j ust growing, but they are all growing very robustly. I t shall reflect quickly on the geo vertical and horizontal number cuts data of our growth. Despite furloughs in the current quarter, BFS grew 20.4% Y -O-Y. The insurance vertical grew 20.3% Y-O-Y. The travel vertical grew 43.4% Y-O-Y, the government vertical outside India grew 48% Y-O-Y and other emerging verticals grew 88.2 % Y-O-Y t hat was the industry cut. From a geo perspective, the Americas grew 9.2% quarter-on-quarter, EMEA grew 8.9% quarter-on-quarter while as you know the firm grew 8.4% quarter -on-quarter overall. From a service line cut perspective, the engineering service line grew 6.3% Q -O-Q and 69.2% Y -O-Y. The intelligent automation service line grew 5.1% Q-O-Q and 11.2% Y-O-Y. The data and integration service line grew 4.1% Q-O-Q and 22.9% Y-O-Y. The BPS service line grew 1% Q-O-Q and 17% Y-O-Y and finally, the cloud and infrastructure service line grew 19.4% Q-O- Q and 42.1% Y-O-Y. Finally, the client -sized cut growth rates information is as follows. The top five accounts grew 13.5% quarter on quarter and 22.5% year on year. Top 10 accounts grew 14.4% quarter -on-quarter and 23.1% year-on-year. That was the revenue cut. QUARTERLY PERFORMANCE – MARGINS AND OPERATING PROFITS Ladies and gentlemen, I shall move on to the margins and the operating profits performance data now. During the quarter we delivered an adjusted EBITDA of $70.5 million registering a sequential growth of 15.4% and a year-on-year growth of 39.3%. The consolidated adjusted EBITDA margin for the quarter is 17.8% and that i s up 122 bps sequentially and that too you will recall in a seasonally shorter quarter. There is another aspect of our margin performance that we would like to draw your attention to. The Cigniti business reported 17.3% margin in the current quarter, which as I said earlier 600 bps higher than what was reported just three quarters back by that business. You will recall that last year Cigniti had reported an EBITDA margin of 12% and Coforge reported adjusted EBITDA margin was 17.6%, reflecting a pro forma adjusted margin of 16.7%. From that level of 16.7% today we are already operating at an YTD adjusted EBITDA margin of 17.4%, which is an upside of 70 bps on last year's pro forma financials. ORDER INTAKE Moving on quickly to the order intake, this is the second consecutive quarter in which the firm has clocked an order intake of more than half a billion US dollars. The number for this quarter, quarter three is $501 million. The executable order book of the firm has moved from $1.3 billion in the previous quarter to $1.37 billion in the current quarter. That represents a 40.1% increase in the next 12-month signed order book over the last year's same quarter. As I have noted earlier, we signed four large deals in the quarter three of them were in North America and one was in ASEAN. PEOPLE Finally, people, the total headcount for the quarter stands at 33,094 reflecting a net addition of 611 employees during the quarter. Attrition continues to be stable and the last 12-month attrition during the quarter stood at 11.9%. With that, I shall now request John Speight, Customer Success Officer, Coforge to walk us through capability and delivery highlights. John, all yours. DELIVERY OPERATIONS & CAPABILITY BUILD

Thank you, Saurabh. Moving on to the outlook, a 8.4% sequential CC growth in a seasonally weak quarter, four large deals signed in that very same quarter, all geos, verticals, horizontals, client -size cohorts piling together. A concurrent and material sequential expansion of 122 bps in margins. A large deals pipeline that is looking very robust going forward. And finally an ever-strengthening next 12-month signed order book, which now is more than 40% higher Y -O-Y, gives us great confidence that the coming years shall once again see robust and sustained growth delivered by Coforge. I would also like to note that the growth and the margin expansion at Cigniti are a preview and I use the word consciously, a preview of sustained growth and further increases in margin to follow. Within two quarters post-acquisition, the business profile of Cigniti has changed materially on both the revenue and the margin front. A firm that was operating at an EBITDA margin around 12% has seen its margin reach 17.3% in this quarter, while its revenue growth and pipeline are also shaping up strongly. We have operationally fully integrated the Cigniti team and as we shared last quarter, the synergies have exceeded even our expectations. Finally, before I conclude, a quick final reflection. The Coforge growth story is now into its eighth year. This is possibly one of the most sustained and I double underline the word sustained high growth business trajectories that any team in our industry has carved out. The key to that sustained and accelerating g rowth trajectory over the last eight years has been an execution DNA that is uniquely our own and an operating culture where the emphasis is on meeting plans and not just sharing plans. Team Coforge has turned an execution of the highest order over the last 8 years. We look forward with confidence and with eagerness at the next eight years. With that I conclude my prepared remarks ladies, gentlemen and I look forward to hearing your comments and along with my team addressing your questions. Thank you.

Coforge Limited CC-Sep24.pdf · 2024-10-23

Ladies and gentlemen, thank you very much for joining us today as we share our Q2 fiscal year 2025 performance and the business outlook going forward. Q2 has been an exceptionally good quarter for the firm. And not only has the quarter been an exceptionally good quarter, it has also been a quarter that has validated the three key assertions that we made at the beginning of this fiscal year. You will recall that at that time, our three assertions were seen as unconventional and met with some degree of concern. You will also recall that those three assertions, which now stand vindicated, were Number one - we had shared then that given the incredibly detailed due diligence we had done, we believed that the Cigniti business was foundationally a healthy one. And that growth of both businesses would accelerate remarkably and immediately on account of synergies once we brought them together. That was assertion one. Assertion two that we had made was that we had shared that even though we were stopping the practice of annual revenue guidance, the health and outlook of our organic Coforge business, and by organic I mean all Coforge businesses excluding Cigniti, was very robust. We were not, repeat not, undertaking an acquisition because our organic business was stressed. We had emphasi zed then that we were undertaking a material acquisition because our organic business was in the pink of health. And assertion three that we made at the beginning of this fiscal year was, we were at that time, you will recall, the first management team in the industry to state that we saw a definite and a positive turnaround in the demand environment based not on analysis from any analyst, but based on the buildup of our indents. Ladies and gentlemen, as you reflect on those three assertions made at the beginning of the fiscal year by us, please contrast them with our Q2 performance that I shall now read out. In Q2, the Coforge organic business has grown 6.3% sequentially in US dollar terms. While the standalone Cigniti business has grown equally strongly by 6.1% sequentially in US dollar terms with both businesses registering exceptional growth. The firm grew sequentially in Q 2 by 26.8% that is sequentially in US dollar terms. We crossed the $1 billion run rate only seven quarters back and today seven quarters later, we are now operating at a run rate of almost one-and-a-half billion US dollars. What makes this synergy driven performance even more remarkable is the concurrent expansion in EBITDA. The Coforge organic business has increased its reported EBITDA by 125 bps in H1 over H1 of last year. At the same time, please note the Cigniti business has seen its EBITDA jump by 360 bps sequentially to 16.2% in one quarter alone. We expected Cigniti to hit a 16.5% EBITDA target by Q 4, but we now believe that we will hit more than an 18% EBITDA target for the standalone Cigniti business by Q4 this year. Ladies and gentlemen, with that preamble, I shall now talk you through the quarterly performance and our assessment of the outlook. QUARTERLY PERFORMANCE – REVENUE ANALYSIS Beginning with the revenue analysis, I am pleased to report that during the quarter, the firm registered revenue of 369.4 million USD. This represents a sequential revenue growth of 26.3% in CC terms, 26.8% in US dollar terms, and 27.5% in Indian rupee terms respectively. Equally importantly, the growth has been evenly spread across verticals, indicating that the growth trajectory of Coforge is likely to serve steam. It is not a lopsided growth that Coforge is experiencing focused on either a particular ve rtical or a particular geography. All verticals, all geographies are growing robustly. During the quarter our banking and financial services vertical grow 5.2% sequentially and contributed 31.3% to our revenue mix. The insurance vertical grew 8.9% that is 8.9% sequentially, and contributed 21.8% to the revenue mix. The travel vertical grew 6.2% sequentially and contributed 18 % to the total revenue. The government vertical outside India grew 6.7% sequentially and contributed 7.8% to the revenue mix. QUARTERLY PERFORMANCE – MARGINS AND OPERATING PROFITS. With that, I shall now move on to the margins and the operating profit discussion. During the quarter, we delivered an EBITDA of 58.4 million USD, registering a sequential growth of 17.6% and an year-on-year growth of 37.6%. This reflects an EBITDA margin of 15.8% for this quarter, which is higher by 55 bps over the same quarter last year. You will recall that wage hikes at Coforge were undertaken in Q2 beginning. For the half year ending September 2024, EBITDA margin stands at 16.4%, higher by 125 bps over H1 last year. ORDER INTAKE Moving on to order intake, over the last 10 quarters, we have been clocking an order intake of more than $300 million per quarter. In the current quarter, the firm saw an order intake of 516 million USD, which includes 67 million from Cigniti. The next 12 months signed order book has moved from 1.07 billion in the previous quarter , it has jumped to 1.3 billion in the current quarter. This represents a 40% increase in the next 12 months signed order book over the last year's same quarter. The large deal velo city and signing continues unabated and the velocity seems to be picking up. During the quarter, we signed three large deals one in continental Europe , one in North America, and one in UK. PEOPLE Moving on to people metrics. On the people front Cigniti has added 4430 people to our headcount. Excluding Cigniti, the organic Coforge business added 1441 people , which represents a 5.4% increase sequentially in the net headcount. This increase of 5.4% in net headcount of the organic Coforge business follows the increase of net headcount by 7.5% in the last quarter. Our total headcount for the quarter stands at 32,483 reflecting a net addition of 5,871 employees during the quarter. Attrition continued to be stable and the last 12 month attrition during the quarter stood at 11.4% including the Cigniti attrition, which is at 11.7%. With that, I shall now request John Speight, Customer Success Officer, Coforge, to walk us through capability and delivery highlights. John, it is all yours. DELIVERY OPERATIONS & CAPABILITY BUILD

Thank you, Saurabh. And just a quick correction, as Saurabh said, we have received the SEBI approval on the open offer and it is expected to be closed by mid-November, not mid-September as we called out. So that is only two or three weeks from now. Summing up in outlook let me start off the Outlook commentary with a broader statement of intent. The growth story of Coforge is now 29 quarters old. This is a time-tested team that is more hungry today than it was more than seven years back when we first came together. Our sustained and very robust growth at Coforge over the last seven years has been driven by an intense execution oriented culture that is uniquely our own. It is underpinned by a deep rooted personal pride and an ambition to create a platform that will be the collective legacy of each one of us at Coforge . The last seven years have seen spectacular growth. The next seven years will be better. With that moving on to the outlook, a 27% sequential dollar growth with the organic business having grown 6.3% sequentially, a concurrent and material expansion of 145 bps in H1 in EBITDA, the second consecutive quarter of significant net headcount addition, a large deals pipeline that is looking very robust, and finally, an ever strengthening next 12 months signed order book, which now is 40% higher Y -O-Y gives us confidence that the coming quarter and quarters to come shall see robust and sustained growth. The growth and the margin expansion at Cigniti are a preview, as Saurabh said, of sustained growth and further increases in margin to follow. We have operationally fully integrated the Cigniti team and the synergies have exceeded even our expectations. As noted, we expect Cigniti ’s standalone EBITDA to go up to 18% plus over the next two quarters alone. Overall, our confidence in the commitment that we offered at the beginning of the year to deliver robust and sustained growth is ironclad. Our medium-term guidance of not just hitting the 2 billion mark, but also delivering a concurrent material expansion in EBITDA is intact. Team Coforge has turned an execution of the highest order over the last seven plus years. We look forward with confidence and eagerness at the next seven years. With that, Ladies and Gentlemen, I conclude my prepared remarks and I look forward to hearing your comments and we all look forward to addressing your questions. Thank you.

Coforge Limited CC-Jun24.pdf · 2024-07-23

Thank you Vikas and a very good morning and good evening to all of you across the world, ladies, gentlemen. Thank you for joining us Thank you for joining us today as we share our Q1 fiscal year 2025 performance and the business outlook. Q1 has been a very eventful quarter for the firm. I am pleased to report that we have begun the fiscal year on a positive note, setting in place a very firm foundation for robust growth in the remaining quarters of the year. A 3.7% sequential CC growth excluding India with a concurrent expansion in EBITDA by 210 bps Y -o-Y in the same quarter, a record headcount quarterly increases of 1,886, a very significantly improved operating cash flow of $23.2 million for Q1 and an ever strengthening order executable, next 12 month booked orders, which now is 19.3% higher Y -o-Y gives us confidence that the quarters to come shall see robust and profitable growth. Regarding the acquisition of Cigniti Technologies, I am very pleased to report that we have already secured a 28% stake and we shall secure 51 to 54% ownership of Cigniti during Q2 itself. On the 5 th of July, we have assumed Board and thereby operational control of Cigniti Technologies. Q2 results of Cigniti shall be delivered under the watch of the reconstituted team that is now running that business as we speak. Cigniti incidentally announced their Q1 results yesterday where they declared a 2.4% sequential US dollar growth, a 16.7% sequential increase in their EBITDA and a 10% sequential increase in their PAT. We expect that the Cigniti business shall show even greater momentum going forward and we believe that a reflection of that performance will be their likely performance in Q2 where not only revenue, but also margin expansion is expected to be very significant. With a cash of $50 million in their balance sheet, the Cigniti business is healthy and poised for significant growth in the quarters and years to come. On a different note, we are now increasingly partnering with our clients to implement real -life AI programs, going beyond just proofs -of-concept. For example, for an investment management firm, we are leveraging GenAI to automate generation of hedge fund reporting, reducing the time required from weeks to hours. During the quarter we also made available on the Microsoft Marketplace our Copilot Offering to optimize the insurance underwriting processes. Finally, before I get into granular details, I would like to call out that starting this quarter we have started reporting Government (ex. India) as a new vertical and have also started including OCF in the fact sheet. With that preamble, I shall now talk you through the quarterly performance and our assessment of the outlook. QUARTERLY PERFORMANCE – REVENUE ANALYSIS Starting off with the revenue analysis, I am pleased to report that during Q1 fiscal year 2025, the firm registered a sequential revenue growth of 1.6% in CC terms, 1.6% in US dollar terms, and 1.8% in Indian rupee terms respectively. It is important to note that Co forge's global revenues from all markets outside India grew 3.7% in CC terms during the quarter. India , in Q1 declined 30% Q-o- Q and contributed only 3.8% to our overall global revenue. During the quarter in reported terms, our banking financial services vertical grew 10.4% Y-o-Y and contributed 31.8% to the revenue mix. The insurance vertical registered a 2.5% Y -o-Y growth, contributed 21.4% to the revenue mix. The travel vertical grew 5.4% Y-o-Y and contributed 18.1% to the total revenue. The fourth vertical, the new vertical, government excluding India, grew 10.5% Y-o-Y and contributed 7.8% to the revenue mix. Other emerging verticals portfolios saw a growth of 12.4% Y-o-Y in Q1, and they contributed 21% to the total revenue mix. QUARTERLY PERFORMANCE – MARGINS AND OPERATING PROFITS With that, I shall now move on to the margins and operating profits discussion. During the quarter, we delivered an EBITDA of 49.6 million USD, registering a year-on-year growth of 22.2%. This reflects an EBITDA margin of 17% for this quarter versus 14.9% in the same quarter last year. This is a sizable increase; you will note of 210 bps Y-o-Y at the reported EBITDA level. Our PAT, adjusted for Cigniti related transaction expenses, has increased by 26.9% Cigniti in US dollar terms and that reflects a 148-bps improvement in PAT on a Y-o-Y basis. ORDER INTAKE Moving on to the order intake for the quarter. I am very pleased to report an order intake of $314 million during this quarter under review. This is the tenth consecutive quarter where the firm has reported an order intake of more than $300 million. We have signed two large deals in this quarter. Our executable order book, which reflects the total value of locked orders over the next 12 months, stands at US$ 1,070 and is up 19.3% YoY. We also signed 10 new logos during the quarter. PEOPLE On the people front and I believe this is important, at the end of the quarter, our head count stood at 2 6,612 and we saw a net headcount addition of 1,886 people in this quarter itself. Utilization including trainees during the quarter stood at 81.6% compared to 81.7% in Q4. As I have noted earlier, the net headcount addition in Q1 for Coforge is more than the net headcount addition over the previous four quarters in fiscal year 2024. Last Last Twelve -Month (LTM) attrition during the quarter stood at 11.4%. I shall now request John Speight, Customer Success Officer Coforge, to walk us through capability and Delivery highlights DELIVERY OPERATIONS & CAPABILITY BUILD

Thank you, Saurabh. A 3.7% sequential cc growth ex. India with a concurrent expansion in EBITDA by 210 bps YoY in the same quarter, a record headcount quarterly headcount of 1886, a very significantly improved operating cashflow of $23.2 Mn and an even strengthening order executable which now is 19.3% higher YoY gives us confidence that the quarters to come shall see robust and profitable growth. On the margin front we believe that by the end of the first half of the year we shall be operating at a 50 bps higher margin than the First half of last year and that shall set up firmly on the path to meeting our guidance of a 50 bps adjusted EBITDA expansion in this fiscal over last year. With the Cigniti business leadership now operating under our operational control and with all due diligence behind us we remain committed to delivering robust growth across both organizations both in the short and long term. With that, I conclude my prepared remarks, and I look forward to hearing your comments and addressing your questions.

Coforge Limited CC-Mar24.pdf ·

Thanks very much, Vikas, and a very good morning, good afternoon, good evening to all of you across the world, ladies, gentlemen. Thank you for joining us for the conversation today as we share our results for quarter four and for full year, fiscal year 24. FY24 has been a year of continued strong organic growth for Co forge. The year was a test case of the ability of Team Coforge to continue to drive robust and sustained organic growth despite very significant macro headwinds, and we are all aware of them. We are pleased to share that this is the fourth consecutive year where we have met our annual organic revenue growth guidance making us one of the very few IT services firms that shared an annual guidance at the beginning of the year and have delivered on it. We have closed the year with 13.3% (Constant Currency ) CC organic revenue growth , a billion dollar plus next 12 months signed order book and with two greater than 300 million TCV deals under our belt. Importantly, despite the challenging macros in fiscal year 24, Coforge continued to make strong investments through the year to ensure that we sustain our growth trajectory even in FY25. We did this by very significantly enhancing our sales, solutioning and pre -sales spends. By remaining one of the few firms that materially increased employee headcount to remain primed for future growth and by providing full increments to the entire employee base from day one of last fiscal itself to ensure that our high employee retention and commitment levels s tay unimpaired. In the course of the call today, I shall share details of the definitive agreement that we have signed to take over Cigniti Technologies Limited. This acquisition will allow us to stand up three new industry verticals across Retail, Healthcare and Hi-tech. It will expand our footprint very materially across the Southwest, the Midwest and the Western markets of the US, and it allows us to acquire new, yet tenured client relationships that we believe will scale up very appreciably in very short order. This will also further our corporate AI -led transformation agenda to create a horizontal AI assurance offering. With that preamble ladies, gentlemen, I shall now take you through the quarterly performance and the fiscal year 24 performance. Let us start with the QUARTERLY PERFORMANCE – REVENUE ANALYSIS I am pleased to report that during the quarter, the firm registered a sequential revenue growth of 1.9 percent in CC terms. In U.S. dollar and INR terms, the growth was 1.7 percent and 1.5% respectively. The growth during the quarter was once again led by the BFS vertical which grew 6.6% sequentially in dollar terms. Our insurance vertical was flat sequentially and the travel vertical grew 1% sequentially in dollar terms. The other emerging verticals together saw a decline of 2% QoQ in dollar terms. Our top five clients and our top ten clients grew 2.8% and 2.1% QoQ respectively. And they contributed 23% and 34.4% respectively to our overall Q4 revenue. Offshore revenue as a percentage of total revenue continues to climb up and for the quarter, it stood at 52.5% compared to 50.7% in the same quarter last year. With that, moving on to quarterly performance margins, and operating profits. QUARTERLY PERFORMANCE – MARGINS AND OPERATING PROFITS In what has proven to be a very tough quarter on margins for our industry, we are pleased to report that both our gross margin and our adjusted EBITDA in quarter four grew sequentially by 102 bps. The big drivers of a continued sequential expansion in margins during the quarter were a significant jump of 230 bps improvement in utilization to 81.7% and the continued ramp up in offshore revenue percentage noted earlier. The consolidated PAT for the quarter stood at INR 2,237 million and it was up by 94.8% on a YOY basis. I shall now move on to the annual performance and start with the revenue analysis. ANNUAL PERFORMANCE – REVENUE ANALYSIS FY24, we registered a consolidated revenue of US $1118.7 million and we have clocked in organic revenue growth of 13.3% in CC terms, 14.5% in INR terms, and 11.7% in US$ terms. Our ability to drive growth in tough macros was aided significantly by growth across each one of our industry verticals that we operate in. The growth was led by the BFS vertical, which saw a 17.1% YoY growth. The insurance vertical through the year grew by 9.6% and the travel vertical grew 4.9% , the other emerging verticals grew 12% in $ terms as I said, and as you possibly noted every vertical group. Moving on to annual performance margins and operating profits. The adjusted EBITDA margin came in at 17.6%. The decrease by 64 bps in FY24 over FY23 was on account of a 60 bps increase in sales, solutioning and pre-sales cost, which is bucketed under SG&A. As noted earlier, not only did we continue to invest very robustly in sales and solutioning, but we also rolled out employee increments on time on day one of last year itself, there was no delay, there was no deferral. Since the SG &A cost now stands at 15% which was the target threshold that we had shared with you for this metric two years back , we remain confident that in fiscal year 25 our adjusted EBITDA margins shall increase by 50 bps. ORDER INTAKE Moving on to order intake, Q4 was an excellent quarter from an order intake perspective and also an excellent quarter from a large deal signing perspective for us. During the quarter, we signed two large deals. The first was a $400 million TCV ten-year deal in the BFS vertical. The other one was a $55 million three-year transformation deal in the insurance vertical with a client, which is a new client for us. The total order intake during Q4 was an exceptionally robust $774 million. We have closed fiscal year 24 with the highest ever recorded early order intake of $1.97 billion, that's almost $2 billion and this metric is up 56% YoY. Our investments in sales and solutioning, despite tough market conditions, have resulted in an increasing velocity and median size of large deals through the year. Our confidence in delivering robust organic growth in Fiscal Year ’25 also stems from the existing pipeline of future opportunities ahead of us. What made Fiscal Year ’24 a landmark year for us was not just that we signed 11 large deals through the year, and this was a tough year I remember, for the industry, but more importantly the fact that tw o out of these 11 large deals were more than $300 million TCV in size. The executable order book, which reflects the total value of locked orders over the next 12 months stands at a record $1.02 billion. This number, some of you might recall, was $869 million a year back and witnessed a growth of 17.3%. PEOPLE People front, our total headcount at the end of Q4 stood at 24,726 and we saw a net addition of 1502 people during the year and 119 during the quarter. Utilization during the quarter stood at 81.7 %. Last Twelve -Month (LTM) attrition for the quarter fell further and is now at 11.5%. We remain as always one of the lowest attrition firms across the industry. I will now hand over the call to John Speight, Chief Customer Success Officer, for providing insights into our operations and capability creation. Over to you, John.

Thanks a lot, John. Now for some exciting news , as you would have noted from our release earlier, we have signed a definitive agreement to take over Cigniti Technologies Limited, which is listed on the NSE and the BSE. Cigniti Technologies is a leading AI and IP-led Digital Assurance and Digital Engineering services company and has grown at a 13.2% CAGR over the last five years. In fiscal year 24, the firm has registered revenue of $219.2 million. Coforge believes, all of us believe, that the acquisition of Cigniti will not only help us grow into a $2 billion firm by FY ’27, but equally importantly the ensuing synergies will ensure that the Coforge operating margins shall improve by 150 to 250 b ps in that same time frame. There are three key reasons why this acquisition will be a game changer for Coforge. These three reasons are: Number 1 - Three new scaled up industry verticals will be added to Coforge. The acquisition of Cigniti enables Coforge to scale up and create three new verticals in Retail, in Hi-tech, and in Healthcare. The merged firm’s retail vertical will be operating at close to $100 Mn per annum in size , the Hi-Tech and the Healthcare verticals will be operating at around 50 Mn per annum size immediately post-merger. Ladies and gentlemen, you have heard me say this many times in the previous quarters, our oft-stated intent to create scaled up verticals in these three industries gets a significant head -start with what we believe is a significantly complimentary acquisition. Number 2 - The second reason why we believe this acquisition will be a game changer for Co forge is that our objective of materially scaling up our presence across the Southwest, the Midwest, and the West US, again, something we've talked about many times on calls, will be realized. Coforge currently derives only 48% of its Global revenues from its North American operations because our presence has largely been East Coast centric in the US. Rapid expansion in North America has been a key objective for us. The acquisition of Cigniti will expand Coforge’s North America revenue by around 33% and it will help us establish a significant beachhead in the crucial West , South -west, and Mid -west markets. Across these three regions, with this acquisition, 28 new Fortune 500 companies shall enter our customer base. We believe very strongly that we will grow these relationships further through cross-selling of additional services. Illustratively, the largest global client for Cigniti is one of the world's leading airlines, where we have been attempting to sign a partnership for over a decade. So that was the second reason. Number 3 - The third reason why we believe the acquisition will be a game changer for us is because it will help us address the significant opportunities that the proliferation of AI is creating for specialized assurance services. Increase in adoption of AI is expected to increase the need for assurance as new complexities and opportunities arise in areas like model validation, model performance testing, core algorithms, enterprise LLMs and output validations to reduce AI hallucinations. Illustratively, especially in our context, let's imagine a scenario where an airline utilizes AI for price optimization , a malfunction in the algorithm could lead to massive revenue losses for the airline. Traditional functional testing alone will not suffice. We will need specialized approaches to ensure that these AI systems perform as intended , with factors like security and performance becoming paramount. Cigniti brings a strong record in precisely these emerging areas. Their expertise in non -functional testing, encompassing security, performance, and automation will be crucial in the development and deployment of trustworthy and reliable AI-powered applications. Our endeavor as a combined entity shall be to build a horizontal AI Assurance offering, including modules for data interrogation, bias detection, stability, precision drift testing and model optimization. So, with those three reasons on why we believe this will be a game changer: 1. Three new scaled up industry verticals being created. 2. Materially scaling up our presence across the South-west, Mid-west and West US and 3. Addressing the significant opportunities that AI is creating in this space. I now hand this over for the financial section to our CFO, Mr. Saurabh Goel.