Cogent E-Services IPO analysis – The company is coming up with an initial public offering in 2023. It is important to understand the company before deciding the invest in the IPO. The IPO issue consists of both fresh and offers for sale. The promoters of the company and investors such as Boomerang Technology LLP and TSSR Technology LLP are selling their stake in the offer for sale. Cogent E-Services is also planning to raise Pre-IPO placement to raise INR 30 Crore before filing the Red Herring Prospectus with the RoC. In that case, the total fresh issue size will be reduced to the extent of the pre-IPO placement amount.
Cogent E-Services Limited Company Insights
Cogent E-Services Limited provides end-to-end omnichannel customer experience (“CX”) solutions in India. Its services enable businesses and brands to connect with their end customers, transform CX across all their touchpoints and channels, and improve response times, business outcomes, and performance.
The Company was incorporated as ‘Cogent E-Services Private Limited’ dated June 15, 2004, in NCR region Delhi. The company has changed its name to Cogent E-Services Limited’ dated January 11, 2022. The company’s corporate Office is in Uttar Pradesh, C-100, Sector 63, Noida, Gautam Buddha Nagar, India.
- Cogent E-Services Limited is present in 7 cities in India including Noida, Vadodara, Bengaluru, Mangaluru, Meerut, Bareilly, and Thane.
- The services of the company can be categorized into four segments Transformative Services and Digital Marketing, Contact Center, Customer Experience Management and Back-end Services, and E-Commerce Services.
- The company had 12,127 full-time equivalents (“FTE”) Customer Service Associates (“CSA”) and 9.337 seats located across 18 sites.
- Cogent E-Services provides service to customers in more than 10 languages, including English, Hindi, and regional languages such as Gujarati, Marathi, Tamil, Telugu, Kannada, Malayalam, Punjabi, and Bangla.
- The company serves over 10 industries with over 70 clients across the country.
Cogent E-Services Limited Founders and Leadership team
Mr. Abhinav Singh is the Co-founder & Managing Director of the company. He holds a B.Tech. degree in Computer Science from KIET and an M.B.A in Marketing from the Institute of Management Technology, Ghaziabad. Mr. Abhinav has 16 years of experience in the field of Business Development.
Mr. Gaurav Abrol is the Co-founder & Chief Executive Officer of the company. He holds a B.Sc. degree in Computer Science from Delhi University and a Master’s in Computer Applications from the Institute of Management Studies, Ghaziabad. He has strong knowledge of the Technology domain.
Mr. Pranjal Kumar is the Co-founder & Chief of Corporate Affairs of the company. He holds a B.Tech. degree in Electronics and Communication from Bangalore Institute of Technology and an M.B.A in Marketing from the Institute of Management Technology, Ghaziabad. He has 19 years of experience in the company. Before founding this company, he worked with UFLEX Group as an Executive Officer for over a year.
Mr. Arunabh Singh is one of the Promoters of the company. He holds a bachelor’s degree in arts from Hindu College, Delhi University, New Delhi, and a master’s degree in education management from King’s College, London.
Cogent E-Services Limited Revenue and Profit
Cogent E-Services has registered a strong revenue from operation over the years, The total revenue from operation reached INR 3.63 billion by the period ended March 31, 2022, with a CAGR of 20.97% during FY2020 to FY2022. This is strong growth over two years. EBITDA has witnessed a growth of CAGR of over 60% during the same period.
Other parameters such as ROCE and ROE also witnessed a strong growth of 37% and 49% respectively during the same period. The top ten clients of the company contribute over 73% of the total revenue while the top 5 clients contribute 56% in FY2022. This reflects the strong client relationship of the company. The total debt has reduced from ₹ 316.02 million in FY2020 to ₹ 102.67 million in FY2022.
Cogent E-Services IPO Insights – Financial Snapshot
| All amounts in INR Million except percentages (Year ended March 31) | 2020 | 2021 | 2022 | September 30, 2022 |
|---|---|---|---|---|
| Revenue from Operations | 2,481.29 | 2,739.42 | 3,631.28 | 2,041.06 |
| Total Income | 2,484.21 | 2,751.07 | 3,657.01 | 2,065.27 |
| Profit After Tax for the Year | 88.95 | 201.16 | 422.54 | 253.57 |
| EBITDA | 308.08 | 504.23 | 789.83 | 475.89 |
| Return on Net Worth (%) | 21.96 | 36.63 | 48.95 | 20.90 |
| NAV per Equity Share (in ₹) | 9.30 | 13.33 | 22.24 | 27.62 |
| Return on Equity | 21.96% | 36.63% | 48.95% | 20.90% |
| Return on Capital Employed Ratio | 0.14 | 0.28 | 0.37 | 0.17 |
| Debt / Equity Ratio | 0.70 | 0.24 | 0.10 | 0.25 |
| Earnings Per Share-Diluted (in INR) | 1.83 | 4.15 | 8.70 | 5 .20 |
| Net Cash from Operating Activities | 176.03 | 402.05 | 491.57 | (35.85) |
Should you invest in Cogent E-Services Limited IPO?
Cogent E-Services Company insights – Learn before invest
- Cogent E-Services registered a revenue growth of approximately 31% between Fiscals 2019-21, beating the industry growth rate during this period.
- India’s CXM-addressed market is expected to grow by approximately 9% CAGR between 2020-24 driven by globalization, changing customer preferences, and technological advancements.
- The company is expected to do better revenue in FY2024 compared to previous years.
- Management is young with strong experience in the industry to drive the growth of the company.
- I would be invested in the company during the Initial Public services process and after the stock list on the bourses.
It is important to do your own due diligence on Cogent E-Services Company Insights before putting your hard earned money.
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