Shares of IT firm Coforge fell in afternoon trade after the company received an income tax demand of ₹83 crore.
What Happened: As per a notification by the company, the income tax demand for the fiscal year 2019-20, which includes interest, amounts to ₹82.93 crore. Despite this setback, Coforge remains optimistic about the outcome and expects no significant impact on its financial statements.
The company has asserted that based on the specific circumstances of the case and existing jurisprudence, it, along with their tax advisors, was confident its position would be vindicated in the end. The company also said it did not expect any material impact on its financials.
The tax demand comes amid a period of financial growth for Coforge. The firm reported a 10.4% increase in profit in its Q1 earnings report for FY 2023-24, amounting to ₹165.30 crore compared with ₹149.70 crore in the same quarter of the previous year. Additionally, the company declared an interim dividend of ₹19 per equity share for FY 2023-24.
Price Action: Coforge’s share price was down 1.03% at ₹5,151.25 in late afternoon trade, though the stock had recovered some sharp losses.
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