New Delhi, IT solutions company Coforge on Thursday posted a 94.86 per cent rise in consolidated net profit to Rs 223.7 crore for the last quarter of FY2023-24. The company had reported a net profit of Rs 114.8 crore in the year-ago period.
Coforge’s revenue from operations was up 8.68 per cent to Rs 2,358.5 crore against Rs 2,170 crore in the corresponding quarter in FY23, according to a regulatory filing by the company.
“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 were able to deliver on the annual growth guidance given at the beginning of FY24.
“The USD 400 million TCV deal signed in Q4, the 56 per cent year-on-year increase in order intake and the 102-basis points sequential margin improvement in Q4 set us up strongly to deliver robust growth in FY25 with expanded margins,” Sudhir Singh, CEO, Coforge said.
For the full FY2023-24, the company clocked a profit of Rs 808 crore, up by 16.46 per cent from Rs 693.8 crore in the previous year. Revenue from operations for FY24 was 14.52 per cent higher at Rs 9,179 crore against Rs 8014.6 crore in FY23.
Coforge’s headcount as of March 2024 stood at 24,726, up 119 from December 2023.
The company’s board declared an interim dividend of Rs 19 per equity share at the face value of Rs 10 each fully paid-up, for the financial year 2023-24. The record date for this will be May 15, 2024.
The company also announced the acquisition of IT service management company Cigniti Technologies at a price of Rs 1,415 per share (in cash consideration). It will acquire up to 54 per cent approx of the share capital of Cigniti Technologies. The acquisition is expected to be completed by Q2FY25.
“Coforge believes that acquisition of Cigniti will not only help it grow to a US$ 2 bn by FY27, but equally importantly ensure that the Coforge’s operating margins improve by 150-200 bps by FY27 itself,” a company statement said.
Further, Coforge’s board approved the reappointment of Sudhir Singh as an executive director of the company for a period up to 5 years with effect from January 29, 2025, and the appointment of Gautam Samanta, who is presently president of the company, as Executive Director for a period up to 5 years with effect from May 2, 2024.
The company’s shares traded at Rs 4,986.10 apiece on BSE on Monday, down 2.24 per cent from the previous close.
