Coforge Share Price Soars Over 12%, Persistent Systems Up 11% On Q3 Results, Dividend Announcements

Coforge share price soars over 12%, Persistent Systems up 11% on Q3 results, dividend announcements

Coforge Share Price Soars Over 12%, Persistent Systems Gains 11% on Strong Q3 Results and Dividend Announcements

Shares of Coforge Ltd and Persistent Systems, leading IT solutions and technology consulting providers, witnessed a stellar rally on Thursday, January 23, 2025, following the release of their financial results for the October-December quarter (Q3 FY25) and the announcement of interim dividends. The robust performance in Q3, coupled with positive management commentary, fueled investor optimism, leading to sharp gains in their share prices.


Coforge Share Price and Q3 Highlights

Shares of Coforge Ltd surged 12.27% to hit a 52-week high of ₹9,238.25 apiece on the National Stock Exchange (NSE) during intraday trading. At 11:56 am, the stock was trading up 12.16% at ₹9,228.75.

Key Q3 FY25 Financial Highlights:

  • Net Profit: Consolidated net profit stood at ₹215.5 crore, marking a sequential increase of 6.57% compared to ₹202.2 crore in Q2 FY25.
  • Revenue from Operations: Revenue grew 8.35% QoQ to ₹3,318.2 crore for the quarter ending December 2024.

Dividend Announcement:

The Board of Directors declared a third interim dividend of ₹19 per share, with a record date of January 30, 2025. The company confirmed that the dividend payment would be processed within 30 days from the declaration date.

Strategic Developments:

  • Order Intake: Coforge reported an order intake of $501 million in Q3 FY25, marking the second consecutive quarter of over $500 million in deals.
  • Large Deals: Four large contracts were signed during the quarter, with a significant presence across North America and ASEAN regions.
  • Subsidiary Acquisition: Coforge’s wholly-owned subsidiary, Coforge Inc., announced the acquisition of Xceltrait Inc. for approximately $17.85 million, aiming to enhance its capabilities in niche IT services.

CEO Commentary:

Sudhir Singh, CEO and Executive Director, expressed confidence in the company’s ability to maintain robust growth in FY26, supported by an 8.4% sequential constant currency (cc) growth, a 40.3% YoY cc growth, and a 122 basis points expansion in margins. Singh also highlighted that the company’s signed order book for the next 12 months is 40% higher YoY, reinforcing its strong growth outlook.


Persistent Systems Share Price and Q3 Highlights

Shares of Persistent Systems also rallied, rising 11.52% to an intraday high of ₹6,337.95 on the NSE. At 11:56 am, the stock was trading up 10.91% at ₹6,303 apiece.

Key Q3 FY25 Financial Highlights:

  • Net Profit: Persistent Systems posted a 14.8% QoQ increase in profit after tax (PAT) at ₹372.99 crore, compared to ₹324.9 crore in Q2 FY25.
  • Revenue from Operations: Revenue grew 5.7% QoQ to ₹3,062.28 crore for the quarter ending December 2024.

Dividend Announcement:

The company’s Board of Directors declared an interim dividend of ₹20 per share, with a record date of January 31, 2025. Persistent Systems confirmed that the dividend payment would be processed within the stipulated time under the Companies Act, 2013.


Market Sentiment and Investor Optimism

The strong quarterly performance of both companies, coupled with attractive dividend announcements, boosted investor sentiment in the IT sector. Market analysts highlighted that the consistent growth in revenue, robust order pipelines, and strategic acquisitions have positioned both Coforge and Persistent Systems as reliable players in the digital transformation and IT services domain.

While the IT sector faced challenges globally due to macroeconomic uncertainties, these results reaffirm the resilience of Indian IT firms. Persistent demand for digital solutions and a focus on cost optimization have enabled these companies to deliver sustained growth.


Conclusion

The stellar Q3 performance and strategic initiatives undertaken by Coforge Ltd and Persistent Systems have reinforced investor confidence, leading to sharp gains in their stock prices. With healthy order pipelines, strong profitability, and attractive dividend payouts, both companies are poised for continued growth in FY25 and beyond.

Investors are advised to monitor the broader IT sector trends, including global demand for digital transformation services and the impact of currency fluctuations, to assess the long-term investment potential of these stocks.

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