Cigniti Technologies shares tumble around 8%; check the merger update with Coforge

“Board of Directors of Coforge Limited, based on the recommendation of the Audit Committee and the Independent Directors… has inter alia considered and approved the Scheme of Amalgamation of Cigniti Technologies Limited with and into the Company and their respective shareholders and creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013,” the company said.

In May this year, Coforge said its board of directors had approved the acquisition of a 54% stake in Cigniti Technologies.

"Coforge has agreed to enter into a share purchase agreement with the promoters and select public shareholders of Cigniti, subject to the execution of definitive agreements and the completion of certain identified conditions precedent," the company had added.

Coforge Q2 Results

For the quarter ended September 30, the company posted a revenue of ₹3,062.3 crore, up 27.5% QoQ and 34.5% YoY.

In US dollar terms, the revenue came in at US$ 369.4 million, up 26.8% QoQ and 32.8% YoY, while in constant currency (CC) terms, the figure grew 26.3% QoQ and 33% YoY.

EBITDA margin for the quarter stood at 15.8%, up 53 bps on a YoY basis. Its adjusted profit after tax (PAT) came in at ₹255.2 crore, up 35.6% on a YoY basis.

Cash flow from operations for the quarter stood at $10.9 million.

Further, the company's board has also recommended an interim dividend of ₹19 per share, and the record date for this payout has been set as October 11, 2024.

Commenting on the Q2 results, Sudhir Singh, Chief Executive Officer, of Coforge Ltd, said, “Q2FY25 has been an exceptional quarter for the firm. A 27 percent sequential dollar growth with the organic business having grown 6.3 percent sequentially, a concurrent and material expansion in EBITDA, the second consecutive quarter of significant net headcount addition, a large deals pipeline that is looking very robust, and an even strengthening order executable, which now is 40 percent higher YoY, gives us confidence that the quarter and quarters to come shall see robust and sustained growth."