homeearnings NewsCigniti Tech net profit down 8.3% in fourth quarter as management looks to stabilise margins
Cigniti Tech net profit down 8.3% in fourth-quarter as management looks to stabilise margins
IT company Cigniti Technologies on Wednesday, May 4, reported an 8.3 percent decline in consolidated profit after tax to Rs 22.6 crore in the quarter ended on March 31, 2022, compared to Rs 24.67 crore in the same period a year ago.
IT company Cigniti Technologies on Wednesday reported an 8.3 percent decline in consolidated profit after tax to Rs 22.6 crore in the quarter ended on March 31, 2022, compared to Rs 24.67 crore in the same period a year ago. Cigniti board approved the acquisition of modern technology IT company Aparaa Digital which operates under the brand name RoundSqr for USD 4.8 million (about Rs 36.6 crore) in an all-cash deal.
The acquisition is expected to bolster Cigniti's strategic pursuit of becoming a specialized digital engineering and assurance services provider. The consolidated revenue of the company grew by 47.7 per cent to Rs 344.08 crore during the reported quarter compared to Rs 233.02 crore in the March 2021 quarter.
For the year ended March 31, 2022, Cigniti PAT declined by about 13 per cent to Rs 91.74 crore from Rs 105.35 crore it reported a year ago.
The annual revenue of Cigniti, however, increased by 38.5 per cent to Rs 1,241.8 crore at the end of 2021-22 from Rs 896.53 crore in 2020-21.
Talking about margins, in an interview with CNBC-TV18, Krishnan Venkatachary, CFO of Cigniti Technologies said, “We thought that we will compromise on margin and go for accelerated growth to see how the engine fires out. I think it has fired on all cylinders very clearly. So the question in terms of the next couple of years of our journey, organically we are looking at high double-digit growth and stabilizing our margins.”
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