Cigniti Tech gains over 5% after Srinivas Kandula takes over as executive director

Cigniti Technologies

Cigniti Technologies' share price climbed over 5 percent on Monday following the appointment of Srinivas Kandula, the former chairman and CEO of Capgemini India as an executive director on the board.

In his new role, Kandula will work closely with Chairman and Managing Director CV Subramanyam to provide strategic direction and inputs across all functions. "Srinivas's rich and diverse experience will help Cigniti Technologies accelerate its journey towards becoming a billion-dollar quality-first software and digital engineering services company," Subramanyam said.

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Kandula has earlier been associated with Nasscom, Confederation of Indian Industry (CII), and Indo-American Chamber of Commerce.

Cigniti is a Hyderabad-based software and digital engineering services company, with Digital Assurance and Software Testing being its primary revenue streams. The company is now focusing on expanding its Digital Engineering expertise in areas such as data and insights, business intelligence/visualization, AI/ML, product and platform engineering, and blockchain.

In Q3FY23, the company’s net profit surged 75.33 percent to Rs 46.55 crore as against Rs 26.55 crore reported a year back. Sales increased by 31.50 percent to Rs 427.99 crore from Rs 325.46 last year.

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In a recent interview with CNBC TV-18, the company's management expressed cautious optimism about near-term growth, with 32 of their 60 clients agreeing to price hikes ranging from 7-10 percent. The push towards digital engineering is expected to represent 18 percent of sales in FY24, up from 9 percent in FY23, and take the company's margin towards 16 percent in FY24.

The market cap of the company has increased over 60 percent in the last 1 year and has gained over 40 percent this year till date.

At 11.30am, the scrip was trading 4.09 percent higher at Rs 776.50 while sectoral benchmark, Nifty IT Index was trading 0.76 percent lower at 28,478.80 points.

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