Cigniti Technologies has reported a steady performance for the fourth quarter of FY24, with consistent growth across revenue, profit, and margins. The company’s net profit rose by 15% sequentially to ₹73 crore, up from ₹63.6 crore in Q3 FY24, reflecting strong execution, cost efficiency, and improved demand for its digital assurance services.
Revenue for the quarter stood at ₹530 crore, growing 2.7% from ₹516.4 crore in the previous quarter. Operational strength was visible in the company’s EBIT, which increased 5.9% quarter-on-quarter to ₹81.2 crore. The operating margin also improved, expanding to 15.3% from 14.9%, driven by improved cost control and better utilization across projects.
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Despite broader sectoral challenges, Cigniti continues to deliver superior financial metrics. The stock currently trades at ₹1,418, with a price-to-earnings (P/E) ratio of 17.5, well below the industry average of 31.3, suggesting valuation comfort. The company’s return on equity (ROE) stands at an impressive 26%, and return on capital employed (ROCE) is at 34.2%, reflecting high capital efficiency. Book value per share is ₹352, and the price-to-book ratio is 4.02.
Over the past three years, Cigniti has delivered a profit CAGR of 34.1% and a sales CAGR of 17.5%, positioning itself as one of the consistent compounders in the mid-cap IT segment. Despite a modest dividend yield of 0.22%, its financial strength is backed by a solid free cash flow of ₹147 crore and a debt-to-equity ratio of just 0.03.
The company’s Altman Z score of 9.37 reflects strong financial health and low bankruptcy risk, while return on assets is a healthy 19.7%, indicating efficient use of resources. Analysts may also take note of the sharp rise in promoter shareholding—from 32.77% to 55.16% in the latest quarter—signaling renewed confidence by the founding group. DII and FII ownership also increased to 9.73% and 10.59%, respectively, indicating that the institutional investors interest is increasing.
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