The board of directors for Coforge on 2 May approved the acquisition of a 54 per cent stake in IT major Cigniti Technologies at a per share price of ₹1,415, the company said in its regulatory filing.
The firm added that the acquisition process is expected to be completed by Q2FY25, subject to regulatory approvals by SEBI.
The firm believes that the acquisition of Cigniti will not only help it grow to US$ 2 billion by FY27 but, ensure that the Coforge’s operating margins improve by 150-200 bps by FY27 itself.
Elaborating the rationale of the acquisition, the firm noted that the acquisition will create three new scaled up verticals – retail, technology and healthcare. Also, it will help the firm realize its objective of scaling up its presence across South-West, Mid-West and Western US markets.
ALSO READ: Adani Ports Q4 Results: Net profit jumps 76% YoY to ₹2,040 crore; declares dividend of ₹6
Among others, the firm hopes the acquisition help Coforge address the significant opportunities that the proliferation of AI is creating for specialized assurance services.
Coforge Q4FY24 results:
Apart from this, the firm also announced the results for March quarter of FY24. It said that their profit after tax stood at ₹223.7 crore, up 94.8 percent compared to ₹115 crore in the same period last year.
ALSO READ: Coforge Q4 results: Net profit rises 95% at ₹224 crore; to acquire 54% stake Cigniti Technologies
Also, the revenue for Q4FY24 grew ₹2,358.5 crore by 8.6 percent, compared year-on-year. On a full year basis, Coforge’s revenue surged 14.5 percent to ₹9,179 crore on a YoY basis. Among others, the Ebitda margin was at 19 percent, sequentially higher by 102 bps.
Coforge also declared its fourth interim dividend of ₹19 per share, setting 15 May as the ‘record date’, according to the regulatory filing.
Commenting on the Q4FY24 results, CEO Sudhir Singh said, “The $400 million deal signed in Q4, the 56% year-on-year increase in order intake and the sequential margin improvement in the fourth quarter set us up strongly to deliver robust growth in fiscal year 2025 with expanded margins.”
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Published: 02 May 2024, 06:32 PM IST
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