The shares of the digital services and solutions provider gained up to 5 percent after the company’s net profit and revenue increased by 95 percent and 9 percent YoY, respectively in the fourth quarter.
With a market capitalization of Rs 30,112.08 crore, the shares of Coforge Ltd were trading at Rs 4,874.35 per share, increasing around 1.75 percent s compared to the previous closing price of Rs 4,790.65 apiece.
Looking into the company’s performance, Coforge Ltd’s revenue increased by 2 percent on a quarter-on-quarter basis from Rs. 2,323 crore in Q3FY24 to Rs. 2,358 crore in Q4FY24. Further, revenue increased by 9 percent year on year, from Rs. 2,170 crore in Q4FY23 to Rs. 2,358 crore in Q4FY24.
Coforge Ltd’s net profit decreased by 6 percent on a quarter-on-quarter basis, from Rs. 243 crore in Q3FY24 to Rs. 229 crore in Q4FY24. Further, net profit increased by 95 percent year on year from Rs. 117 crore in Q4FY23 to Rs.229 crore in Q4FY24.
Moreover, the company has launched a Qualified Institutional Placement (QIP) to raise up to Rs 2,240 crore. The floor price for the QIP has been fixed at ₹4,531 per share, which is a 6.8% discount on Wednesday’s price for Coforge, CNBC reported. Coforge’s fundraising committee will meet again on or after May 27 to establish the issuance price and qualifying institutions to which these QIP shares will be issued.
Furthermore, the company will use the proceeds raised from this QIP to support its recent acquisition of Cigniti Technologies. Coforge plans to buy up to 54% of Hyderabad-based Cigniti Technologies from the promoter and select public shareholders for ₹1,415 per share.
However, Coforge wants to leverage this purchase to help it reach its objective of being a $2 billion company by fiscal year 2027. It also intends to boost margins by 150 to 200 basis points within this time frame through this transaction.
Coforge Limited is an India-based information technology (IT) solutions provider. It specializes in in-app development and maintenance, managed services, cloud computing, and business process outsourcing. The company provides computer programming consulting and related services.
Written by:- Abhishek Singh
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