Coforge believes its ambitious target of becoming a $5 billion revenue company by FY30 does not require a dramatic shift in strategy or a major acceleration in growth.
In an exclusive conversation with NDTV Profit, Managing Director and CEO Sudhir Singh said the company's FY30 vision is largely based on maintaining the growth trajectory it has delivered over the last nine years, supplemented by a single acquisition.
“For starters, it's not terribly ambitious,” Singh said. “All that we are saying is that we will continue the growth rate that we've been on for the last nine years.”
The IT services company currently operates at an annual revenue run-rate of about $2.5 billion. According to Singh, maintaining existing growth momentum and completing one acquisition worth roughly $500 million would be sufficient to achieve the FY30 target.
“If all we do over the next four years is one acquisition of about $500 million and just maintain the rate that we've been on, we should by FY30 have a $5 billion organisation,” he said.
Singh said the confidence behind the target stems from Coforge's order book, execution track record and its ability to convert emerging technology opportunities into revenue. Importantly, the company is not actively pursuing acquisitions at any cost.
“We don't have any asset that's cooking. We don't have any irons in the fire at this point in time,” Singh said.
He added that any future acquisition would have to meet strict criteria, including reasonable valuations and limited competitive interest.
“We will keep looking out for assets as long as we find an asset that is not being very actively solicited,” he said.
Coforge has completed five acquisitions over the past decade and credits much of its success to a disciplined integration strategy. Singh said the company typically avoids auction-driven deals and conducts extensive due diligence before making an offer.
While acquisitions remain part of the growth strategy, Singh made it clear that organic growth remains the primary driver.
“The confidence comes from the order book that's locked in and the execution track record that's been second to none,” he said.
For Coforge, the path to $5 billion appears less about transformational deals and more about repeating a formula that has already worked for nearly a decade.
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