Coforge Ltd, an Indian IT services provider, announced a significant increase in its third-quarter profit of 24%, which exceeded expectations. This was due to a number of large outsourcing agreements across various industries.

The outsourcing industry in India is currently experiencing growth due to increased demand from the US and Europe for cloud-based services. This is a result of businesses rapidly transitioning to cloud systems during the pandemic and continuing to seek assistance with digital migration.Coforge, a company that competes with large outsourcing firms such as Tata Consultancy Services and Wipro, reported winning five large deals during the quarter, including one worth over $50 million, and two large deals worth over $30 million in the previous quarter. This led to a consolidated profit of 2.28 billion rupees ($28.06 million) for the third quarter ended December 31, which was an increase from 1.84 billion rupees from the previous year. This exceeded analysts’ expectations of 2.21 billion rupees, as per Refinitiv data.

Despite concerns about growth and technology spending in export markets, particularly Europe, Coforge reported an increase in revenue from both the US and Europe in the third quarter. These regions account for around 80% of the company’s total revenue.

The company stated that it decreased potential risks in its operations by reducing the concentration of clients and also reported a decrease in the rate of employee departure, with a 15.8% decrease from the previous year’s rate of 16.3%.

The company’s revenue from operations increased by 24% to 20.56 billion rupees, driven by large orders from insurance, banking, and financial services companies. However, the margin before interest and taxes decreased to 14.45% from 14.90% in the previous year, due to the impact of employee costs and other expenses.