Coforge eyes $50-200 million acquisition in data analytics, cloud space

As part of its growth plans, the firm plans to hire 3,000-4,000 people by FY24-end

Digital-led IT services firm Coforge is scouting for acquisitions in the data analytics and cloud space or in the healthcare vertical, CEO Sudhir Singh said in a virtual interview.  

“We are actively scouting for acquisitions…we are looking at healthcare from a vertical integration perspective…we are looking at anywhere in the range of $50-200 million in terms of ticket size,” Singh told Business Standard.

As of today, Coforge does not report healthcare as a separate vertical but it is clubbed under “Others” that primarily include healthcare, retail, hi-tech, manufacturing, and public sector.

The last acquisition by Coforge was in 2021 when it bought a controlling stake in SLK Global Solutions, a provider of business process management (BPM) and digital solutions to the financial services industry, for about Rs 918 crore.

 

Unlike the larger peers such as Infosys and Wipro, Coforge retained its FY24 annual revenue growth guidance of 13-16 per cent in constant currency terms. The company is on track to double its revenues in less than five years, Singh said. For FY23, Coforge clocked revenues of about $1 billion.  

As part of its growth plans, Coforge plans to hire 3,000-4,000 people by the end of FY24. “This will be a mix of campus hires and laterals in skills like data and automation, product engineering, and analytics,” Singh said.

The company made a net addition of 1,000 people during the quarter, taking the total headcount to 24,224 as of 30 June. The attrition on a last-twelve-month basis stood at 13.3 per cent, down 470 basis points on an annual basis.

Coforge on Thursday reported a net profit of Rs 165 crore, up 10.4 per cent YoY for the first quarter ended June. The revenues were up 18.4 per cent YoY and 2.7 per cent QoQ in constant currency to Rs 2,221 crore. In dollar terms, revenue stood at $271.8 million.

The company signed the highest ever order intake of $531 million during the June quarter, including two over $50 million deals signed in the Banking and Financial Services (BFS) vertical.