Cigniti Acquisition a "Game Changer"
Coforge CEO Sudhir Singh believes the recent acquisition of Cigniti Technologies will be a "game changer" for the Noida-headquartered company.
"We feel Cigniti will not be one of those acquisitions which are very good or excellent. But it will be an outright game changer for us," Singh told Business Standard.
The Coforge board approved the acquisition of a 54% stake in Cigniti Technologies on May 2nd. The deal was valued at Rs 1,415 per share.
Coforge's Growth Plans
Coforge expects the acquisition to propel it to become a $2 billion revenue company by FY27. The company also expects the deal to improve margins by 150-200 basis points.
a $100 million vertical in retail, and $250 million verticals each in healthcare and high-tech domains.
Cigniti's existing presence in the western US market will also allow the merged entity to expand. Coforge has been trying to enter this market for three years.
Coforge's Q4 FY24 Results
Coforge announced its fourth-quarter results for FY24 on Thursday. The company reported a 94.8% year-on-year increase in fourth-quarter net profit, which stood at Rs 223.7 crore. This was led by deal wins worth $774 million in the quarter.
Coforge's Outlook for FY25
Despite challenging macroeconomic conditions, Singh said there were visible green shoots in the year ahead and the firm was optimistic about growth opportunities in FY25.
"We are seeing clear green shoots in FY25 on the demand side. Quarter four has been a fantastic quarter for us and we've closed the year with a $2 billion order intake. We feel really solid about the fact that FY25 will be another robust growth year in light of all this," said Singh.
Coforge's Investment in Generative AI
The firm, post the Q3 FY24 earnings call, said it will be doing 40% of its incremental investments in Generative AI (GenAI).
Singh has said the firm has set a target of training 40% of its workforce in GenAI by the end of the current financial year.
"There is no service line, which will not be AI influenced. So, in the longer term, the intent is to train 100% of our workforce in GenAI capabilities. Initially, the aim will be to scale it to 50%," he said.
Coforge's Stock Performance
Shares of Coforge fell 10% during the trading session on Friday after the company announced its earnings for the last quarter of FY24.