IT Stocks Shine: Coforge & Persistent Systems Lead the Charge with Strong Q3 Performance
The IT sector hogged the limelight in the stock market, with the Nifty IT index surging more than 2% on the back of impressive quarterly results from Coforge and Persistent Systems. These two companies saw their shares soar by 10%, boosting the overall sentiment in the sector.
Coforge and Persistent Systems were the top performers among the 10 components of the Nifty IT index, which saw an overall positive trend, excluding HCLTech that dipped by 0.5%. The rally of Coforge and Persistent Systems was on account of their Q3 financial results for the December quarter, which were better than analysts’ expectations.
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Coforge Q3 Performance: Strong Profits and Optimistic Outlook
The 10% rally in the stock was primarily driven by the quarterly results of Coforge. The company reported a 3% sequential growth in net profit, which rose to Rs 206.4 crore. Revenue from operations also jumped 8% to Rs 3,318.2 crore.
CEO Sudhir Singh sounded extremely positive on the growth trajectory for Coforge. He observed a very strong pipeline of projects, large deals, and an excellent order book. He informed CNBC-TV18 that the company was looking to touch a $2 billion revenue run-rate and felt it could do well, based on its last few quarters’ performance.
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Persistent Systems: Outstanding Profit and Revenue Growth
Persistent Systems also made its mark with the stellar Q3 FY25 performance. The company posted a net profit growth of 15% sequentially at Rs 372.99 crore, while year-on-year growth was massive at 30%.
Revenue also grew strongly, up 6% QoQ and 23% YoY, at Rs 3,062.3 crore. The company’s performance elicited mixed reactions from brokerages, but it still witnessed a sharp 10% jump in its share price after the announcement.
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Cigniti Technologies Posts Strong Quarterly Growth
Besides Coforge and Persistent Systems, there was another stock that left investors impressed by its performance in the December quarter. Cigniti Technologies is an AI-driven digital engineering services firm that reported a 46.7% YoY increase in net profit to Rs 22 crore. Revenue also grew by 10.3% YoY, reaching Rs 516.4 crore.
Cigniti’s EBIT (Earnings Before Interest and Taxes) rose by 35.3% YoY, with margins improving to 14.9% from 12.1% last year. The stock rose over 11% after these positive results.
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Global Market Rally Boosts Investor Sentiment
The global market trend also supported the positive momentum in the IT sector. Wall Street’s major indexes in the US hit new highs as the S&P 500 touched an intraday record, mainly driven by the strong earnings from Netflix and the announcement from President Donald Trump on a $500 billion AI infrastructure investment plan.
Netflix shares soared by nearly 10% as the company reported a record number of subscribers during the holiday quarter and raised prices for most service plans. The technology sector, led by companies like Nvidia and Microsoft, was also up in the day.
President Trump’s announcement on Stargate, a joint venture by OpenAI, SoftBank, and Oracle, has added fuel to the AI infrastructure optimism. The companies intend to invest up to $500 billion in data center construction and enhancement of US AI infrastructure.
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Investor Takeaways
•Coforge and Persistent Systems reported stellar Q3 performances, lifting the Nifty IT index by over 2%.
•Cigniti Technologies also saw impressive growth, up by 11%.
• Global market trends, especially from Wall Street are giving supporting trends in tech stock sentiment.
• Strong earnings and great announcements concerning the investment of artificial intelligence into such companies create huge investor sentiments.
Conclusion:
The IT space continues to go on well with leaders Coforge, Persistent Systems, and Cigniti Technologies, who presented some really promising Q3 numbers. All in all, good global market cues and the excellent performance in the tech sector ensure a positive short-term outlook for the stocks.
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