Coforge Q4 FY24: Revenue Up 8.7%, PAT Grows 95% YoY

Coforge on Thursday reported its Q4 FY24 earnings, noting an increase of 8.7 per cent growth in the quarterly revenues year-on-year (YoY) to Rs 2358.5 crore.

The company reported its profit after tax (PAT) to have grown by 94.8 per cent to Rs 223.7 crore. Coforge’s adjusted EBITDA margin for the quarter was at 19 per cent, sequentially up by 102 bps.

In the March quarter, the company’s order intake was recorded at USD 774 million, adding eight clients.

In a statement, Sudhir Singh, CEO, Coforge said, "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 USD 400 million TCV deal signed in Q4, the 56 per cent YoY 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."

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

Cigniti Acquisition 

During the Q4 earnings, Coforge announced that it has signed a definitive agreement to acquire Cigniti Technologies. The company said it believes that acquisition of Cigniti will not only help it grow to a USD 2 billion by FY27. The acquisition is expected to help Coforge’s operating margins improve by 150-200 bps by FY27 itself.

The acquisition will create three scaled up verticals Retail, Technology and Healthcare. Additionally, it will also help Coforge scale up presence across South-West, Mid-West and Western US markets and also help the company address opportunities in AI for specialised Assurance Services.