CGI has announced results for Q2 FY22, for the period ending March 31, 2022.
Q2 FY22:
- Revenue was CDN$3,268.9m, up 6.2% y/y, up 10.0% y/y in CC
- EBIT is CDN$499m, a margin of 15.3%, down 400 bps y/y
- Adjusted EBIT is CDN$523.6m, a margin of 16.0%, up 22 bps y/y.
Q2 FY22 revenue breakdown by operating unit (and y/y revenue growth on an actual and constant currency basis) was:
- Western and Southern Europe CDN$599m (+8.8%, +16.7% CC)
- U.S Commercial and State Government CDN$507m (+17.6%, +17.6% CC)
- Canada CDN$495m (+11.6%, +11.6% in CC)
- U.S. Federal CDN$439m (+9.7%, +9.7% CC)
- U.K and Australia CDN$344m (-0.4%, +2.6% CC)
- Central and Eastern Europe CDN$342m (+1.4%, +8.5% CC)
- Scandinavia CDN$243m (-11.4%, -2.7% CC).
- Finland, Poland & Baltics CDN$190m (-4.0%, +3.2% in CC)
- Asia-Pacific CDN$193m (+16.2%, +20.0% CC).
Q2 FY22 adjusted EBIT margin by operating unit (and in the prior year quarter) is:
- Western and Southern Europe 15.4% (14.5%)
- U.S Commercial and State Government 14.2% (14.3%)
- Canada 21.9% (22.1%)
- U.S. Federal 16.2%(14.0%)
- U. .K and Australia 16.7%(18.0%)
- Central and Eastern Europe 10.5%(10.7%)
- Scandinavia 5.2% (6.4%)
- Finland, Poland & Baltics 12.1% (14.2%)
- Asia-Pacific 29.7% (31.7%)
Q2 FY22 revenue share by vertical (with NelsonHall estimated approximate revenue and y/y growth) was:
- Government 36% (~CDN$1,144m, +9.3%)
- Financial services 22% (~CDN$719m, +6.2%)
- Telecoms & utilities 13% (~CDN$425m, -1.4%)
- Manufacturing retail & distribution 23% (~CDN$742m, +1.8%)
- Healthcare 7% (~CDN$229m, +23.9%).
Q2 FY22 revenue mix by service type (with NelsonHall estimated approximate revenue and y/y growth) is:
- Consulting & systems integration 54% (~CDN$1,765m, +27.4%).
- IT outsourcing 46% (~CDN$1,504m, -11.2%)
Q2 FY22 bookings were CDN$3,316m (Q2 FY 2021: CDN$3,892m), a book-to-bill ratio of 08.7%.
Backlog at the end of Q2 FY22 was CDN $23,144m, up from CDN$23,094m at the end of Q2 FY21.
| Vendor | CGI |
| Initial currency type (specify local currency used) | CDN$ |
| Period Ending | 2022-03-31 |
| Growth | 6.2 |
| Revenues ((m) in local currency | 3269 |
| Revenues (in $m at that date) | 3269 |
Analyst comments:
CGI's growth accelerated in Q2 thanks to a more dynamic market and more inorganic contribution. The comparable effect was neutral (Q2 FY21: -1.7% at cc).
CGI continues to invest in its HR. The company is gradually expanding its presence to offshore and nearshore countries and is accelerating hiring. It is also investing in internal reskilling. CGI has certified 5k employees, as part of its three-year plan to certify 15k. Attrition is back to the pre-pandemic level.
Finally, CGI continues its CDN $1bn M&A plan, having announced a new acquisition in the French market. Harwell brings 150 personnel that will join CGI Business Consulting's 800 consultants in France.