Cigniti acquisition, large deals boost Coforge’s performance in Q2

Indian IT services company Coforge posted a 17% increase in net profit for the July-September quarter of FY25, reaching ₹212 crore, up from ₹181 crore in the same period last year. The Noida-based firm's revenue from operations grew 34% year-on-year (YoY) to ₹3,062 crore, compared to ₹2,276 crore in Q2FY24, driven by sustained demand and large deal wins, according to an exchange filing on Wednesday. 

The acquisition of IT firm Cigniti earlier this year has also started bearing fruit in terms of an increase in workforce and tech capabilities, the company said.

During the quarter, Coforge secured $516 million in new orders, including three major contracts, marking the 11th consecutive quarter in which order intake surpassed $300 million. The company's order book, which is expected to be executed over the next 12 months, reached $1.3 billion, reflecting a robust 40% increase from the previous year. Additionally, Coforge welcomed 13 new clients during this period, further enhancing its portfolio.

The company’s employee count increased by 5,871, bringing the total to 32,483. This growth was significantly influenced by the recent acquisition of Cigniti, which added 4,430 employees. Excluding this acquisition, Coforge's organic growth accounted for an additional 1,441 employees during the quarter. The company's attrition rate improved, decreasing by 130 basis points year-on-year to 11.7%. Employee benefit expenses rose nearly 35%, reaching ₹1,910 crore.

The acquisition of Cigniti Technologies earlier this year has proven transformative, said the company. According to Sudhir Singh, CEO of Coforge, this acquisition has enabled Coforge to establish three new verticals: a $100-million vertical in retail and two $250-million verticals in healthcare and high-tech sectors. Furthermore, Cigniti’s presence in the western US market has facilitated the expansion of the merged entity.

In recent months, Coforge invested in Centers of Excellence for Generative Artificial Intelligence (GenAI), low-code/no-code, as well as the development of AI solutions like Coforge Orion and Quasar.

The people-centric company's agile learning framework prioritises technical, domain, functional, project management, human, and leadership skills, ensuring its workforce remains future-ready.

Coforge's global presence, which encompasses 21 countries and a varied workforce exceeding 25,000 employees representing 45 nationalities, highlights the significance of cultivating a unified and inclusive corporate culture.

With its enterprise GenAI platform available on the Microsoft Azure Marketplace and the launch of Quasar Responsible AI, Coforge envisions a future where intelligence is embedded across all its offerings, from process and data to cloud, engineering, automation, and experience. Singh further said that his commitment to talent development, continuous learning, and embracing emerging technologies has driven innovation and delivered exceptional value to its clients.