Coforge532541IT services
Coforge management discussed FY27 growth guidance, Randstad acquisition contribution, Saudi market revenue loss, and AI business margins in an earnings call Q&A
By ScoutQuest · · 1 min read
- AI share of sales
- 13 and 1/2 percent
- AI revenue growth YoY
- 40 percent
- Saudi growth impact this quarter
- 60 to 70 basis points
- Randstad annualized revenue
- $500 million
- Traditional industry gross margin
- 30 to 33 percent
Heard on business television between 08:37:11 - 08:40:11 IST.
- Management said FY27 growth is targeted to be close to or equal FY26 growth, with acceleration expected in FY28 once the Randstad acquisition completes and opens up mainland Europe and Australia markets.
- Randstad acquisition has annualized revenue of close to $500 million; a quarter of that will be recognized in Q4 FY27, with a similar full-year contribution expected in FY28.
- Saudi market weakness cost about 60-70 basis points of growth this quarter and management said this revenue is lost for good, with no growth factored in from that market for the next two quarters.
- AI now contributes about 13.5% of sales, growing over 40% year-on-year; enterprise AI productivity benefits are largely passed to customers, while business AI (new addressable market) is expected to be both revenue- and margin-accretive.
- Traditional services gross margins were pegged at 30-33% industry-wide, with AI-native services expected to be higher due to premium skills and reusable assets, though management declined to give a specific margin number, noting extra AI margins are being reinvested into building capabilities.
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