Coforge is not the only company to offer Apple products after reaching a revenue milestone. (Representative image)
The company’s Q4FY23 profit fell to Rs 116.7 crore from Rs 244.8 crore in the corresponding quarter last year.
IT solutions company Coforge passed the $1 billion revenue milestone in its fourth quarter results. The company is celebrating this momentous occasion by giving away an Apple iPad to all of its employees – 21,000 employees.
“We believe our performance during the quarter was marked by two key achievements. The first was sequential quarterly US dollar growth of 5.0%. The second major milestone was that the company passed the $1 billion revenue mark. Our performance heading into FY24 puts us in a good position to deliver robust growth,” Coforge Chief Executive Sudhir Singh said in a statement.
According to a report by Money control, the celebration will cost Coforge Rs 80.3 crore. The company’s Q4FY23 profit fell to Rs 116.7 crore from Rs 244.8 crore in the corresponding quarter last year. The decline was mainly due to a one-time expense of Rs 52.3 crore. Coforge had incurred the cost as part of its reduced fundraising efforts, which were approved in 2021.
Coforge’s revenue rose 24.5% year-on-year to Rs 2,170 crore. The company’s banking and financial services arm accounted for 31% of its business and showed resilience in the face of events such as the collapse of Silicon Valley Bank and the global banking crisis. The company had previously said it had very limited exposure to US regional bank earnings.
Coforge expects its annual revenue forecast to be around 13-16% for FY24 in constant currency terms. The company forecast a gross margin increase of 50 basis points. It expects its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to be at similar levels to FY23.
Coforge’s board of directors has recommended an interim dividend of Rs 19 per share. The record date for payment will be May 9.
Coforge is not the only company to offer Apple products after reaching a revenue milestone. In 2006, Cognizant Technology Solutions gave away 18,000 iPods to its employees after breaking the $1 billion mark in annualized revenue during the December 2005 quarter. Each of its employees received a 30 GB Apple iPod. More Later, the company also used the device for training purposes, giving workers access to tutorials they could learn at their own pace after downloading them to their iPods.
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