Business Standard

Coforge Q4 results: Profit rises 94.8%, acquires Cigniti Technologies

The dollar revenue for the fourth quarter grew 1.9 per cent sequentially in constant currency to $286.8 million, led by deal wins worth $400 million

Sudhir Singh, chief executive officer and executive director of Coforge

Sudhir Singh, chief executive officer and executive director of Coforge

Ashutosh Mishra New Delhi

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Noida-based IT company Coforge reported a 94.8 per cent year-on-year increase in net profit to Rs 223.7 crore for the March quarter, on the back of revenue of Rs 2,358.5 crore, up 8.7 per cent from the same period last year.

The dollar revenue for the fourth quarter grew 1.9 per cent sequentially in constant currency to $286.8 million, led by deal wins worth $400 million.

The company’s revenue for FY24 grew 14.5 per cent in rupee terms and stood at Rs 9,179 crore.

The board also approved the acquisition of a 54 per cent stake in Cigniti Technologies at a per share price of Rs 1,415. The acquisition process is expected to be completed by Q2 FY25.

Cigniti Technologies is an Indian IT services company that specialises in digital engineering solutions, digital assurance services, and IP and innovation platforms.

“Coforge believes that the acquisition of Cigniti will not only help it grow to a $2 billion by FY27, but equally importantly ensure that Coforge’s operating margins improve by 150-200 basis points by FY27 itself,” said the company.

The acquisition will create three new scaled-up verticals—Retail, Technology, and Healthcare—and help Coforge realise its objective of scaling up its presence across South-West, Mid-West, and Western US markets. It is also expected to help Coforge address the significant opportunities that the proliferation of AI is creating for specialised Assurance Services.

Coforge’s operating margins expanded 102 basis points sequentially to 19 per cent for the fourth quarter.

“FY24 was an exemplary year where the firm grew 13.3 per cent in CC organic terms, thus becoming one of the very few firms across the industry that was able to deliver on the annual growth guidance given at the beginning of FY24. The $400 million TCV deal signed in Q4, the 56 per cent year-on-year increase in order intake, and the 102-bps sequential margin improvement in Q4 set us up strongly to deliver robust growth in FY25 with expanded margins," said Sudhir Singh, chief executive officer, Coforge.

Despite the ongoing macro uncertainties, the company’s total order book executable over the next 12 months stood at $1.02 billion, up 17.3 per cent year-on-year. The total order intake during the year stood at $1.97 billion, up 56 per cent from the previous year.

The headcount of the firm saw a slight increase from the previous quarter and stood at 24,726.

Further, the attrition rate improved to 11.5 per cent in the March quarter from 14.1 per cent in Q4 FY23.

The company recommended an interim dividend of Rs 19 per share, and the record date for this will be 15 May 2024.

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First Published: May 02 2024 | 7:59 PM IST

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