IT solutions company Coforge crossed the $1 billion revenue milestone in its fourth-quarter earnings. The company is celebrating this momentous occasion by gifting an Apple iPad to all staffers – 21,000 employees.
“We believe that our performance during the quarter was marked by two key achievements. The first was a quarterly sequential US$ growth of 5.0 percent. The second major landmark has been the firm crossing the USD one billion revenue mark. Our performance heading into FY24 sets us up well to deliver robust growth,” Sudhir Singh, Coforge’s chief executive officer, declared in a statement.
According to a report by Moneycontrol, the celebration will cost Coforge Rs 80.3 crore. The company’s Q4FY23 profit went down to Rs 116.7 crore from Rs 244.8 crore in the corresponding quarter last year. The decline was mostly due to a one-off expense of Rs 52.3 crore. Coforge had incurred the cost as part of its curtailed fundraising efforts, which were given the nod in 2021.
Coforge’s revenues rose 24.5 percent year-on-year to Rs 2,170 crore. The banking and financial services arm of the company accounted for 31 percent of its business and showed resilience in the face of events like the collapse of the Silicon Valley Bank and the global banking crisis. The company had earlier said that it had very limited exposure to revenues from American regional banks.
Coforge expects its annual revenue guidance to be around 13 to 16 percent for FY24 in constant currency terms. The firm has predicted a 50 basis points gross margin increase. It expects its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to be at similar levels as FY 23.
Coforge’s board has advocated an interim dividend of Rs 19 per equity. The record date for the payout will be May 9.
Coforge is not the only company to give away Apple products after reaching a revenue milestone. In 2006, Cognizant Technology Solutions gave away 18,000 iPods to its employees after it crossed the $1 billion mark in annualised revenue run rate during the December 2005 quarter. Each of its employees received a 30 GB Apple iPod. The company later used the device for training purposes as well, giving workers access to tutorials that they could learn at their own pace after downloading onto their iPods.
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