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Coforge is set to acquire a 54% stake in Cigniti Technologies, expecting to reach $2 billion in revenue by FY27. The acquisition aims to expand into new verticals, strengthen US market presence, and tap into AI opportunities. In Q4FY24, Coforge reported a consolidated revenue of ₹2,358.50 crore, up 8.6%, and a PAT of ₹223.70 crore, up 94.8% YoY. The board declared a fourth interim dividend of ₹19 per share.
Coforge's board has approved the acquisition of a 54% stake in Cigniti Technologies at ₹1,415 per share, expecting completion by Q2FY25 pending regulatory approvals. The move aims to strengthen Coforge's growth to $2 billion by FY27 and enhance operating margins by 150-250 bps.
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The acquisition is motivated by three main factors: creating scaled-up verticals in retail, technology, and healthcare; expanding presence across US markets; and seizing AI-driven opportunities in specialised assurance services.
In the March quarter of FY24, Coforge reported a consolidated revenue of ₹2,358.50 crore, marking an 8.6% increase from the previous year. Profit after tax (PAT) stood at ₹223.70 crore, reflecting a significant 94.8% YoY growth. The company's EBITDA margin stood at 19%, sequentially higher by 102 bps.
The company declared a fourth interim dividend of ₹19 per equity share for the financial year 2023-24, with a record date set for May 15th.
CEO Sudhir Singh expressed confidence in the company's growth trajectory, citing a $400 million deal signed in Q4, a 56% YoY increase in order intake, and sequential margin improvement, positioning Coforge for robust growth in fiscal year 2025 with expanded margins.
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