Cogent is a customer experience (CX) solutions provider that provides omnichannel solutions across a variety of customer engagement touchpoints, including customer sales and support via voice and non-voice channels, back-office solutions, transformational services, and digital marketing.
The firm is based in Noida and has offices in seven cities throughout India (Noida, Vadodara, Bengaluru, Mangaluru, Meerut, Bareilly, and Thane). It employs 9,022 full-time equivalent ("FTE") Customer Service representatives and 7,609 seats across 14 locations.
The company's geographic reach allows it to serve consumers in more than ten languages, including English, Hindi, and regional languages like Gujarati, Marathi, Tamil, Telugu, Kannada, Malayalam, Punjabi, and Bangla.
Cogent E-Services Ltd IPO Objectives
Here are a few quick reasons why Cogent E-Services going public:
- Funding investment in IT assets for expansion and existing IT infrastructure of our Company.
- Funding working capital requirements of our Company.
- General corporate purposes.
- To receive the benefits of listing the Equity Shares on the Stock Exchanges and enhancement of the Company’s brand name amongst their existing and potential customers and creation of a public market for their Equity Shares in India.
Why should you invest in Cogent E-Services Ltd IPO?
- Market grew by approximately 7% CAGR (2018-20) and is expected to grow at 9% CAGR (2020-24), Cogent E-Services witnessed revenue growth of approximately 31% between Fiscals 2019-21, beating the industry growth rate during this period.
- Based on the publicly available data of certain CXM focused service providers which have a presence in the Indian market in Zinnov’s comparison set, Cogent E-Services are the only player showing both high EBITDA margins and high cumulative growth at the same time.
- In Fiscal 2021, the company registered 37% ROE and 31% ROCE. Based on the publicly available data of certain CXM focused service providers in the Indian market, Cogent is one of the leading players showing both high ROE and high ROCE numbers.
IPO Financials
| Particulars (in Rs. Crores) | FY 2021 | FY 2020 |
|---|---|---|
| Revenue | 273.9 | 248.1 |
| EBITDA | 50.4 | 30.8 |
| PAT | 20.1 | 8.9 |
| Total Assets | 144 | 151.1 |
| Share Capital | 1 | 0.8 |
| Total Borrowings | 15.4 | 31.6 |
Know before investing
Strengths
4Client-centric end-to-end customer experience solutions provider with omnichannel capabilities.
In the Indian market, domain information across industry verticals allows the organisation to be more adaptable in its processes.
Time to market is reduced by integrating across regions and sites.
The company has Demonstrated good financial performance in the last few years and has an experienced management team.
Risks
4It operates in a highly competitive market, and any inability to compete successfully against existing and future competitors might have a negative impact on revenue.
The business, financial performance, and prospects might be harmed if it fails to build and innovate its CXM tools, platforms, and procedures.
Its capacity to grow will be limited if it cannot adjust its service offerings to changes in technology and market expectations.
Revenues are reliant on a small number of industry verticals, and any decline in demand for services in these verticals might result in revenue reductions.
Peer Comparison
| Competitor | Conneqt | Altruist CM | Teleperformance | Concentrix |
|---|---|---|---|---|
| Total Revenue of India Entity (In Cr) | 897.9 | 181.4 | 2620.9 | 446.7 |
| Revenue (Within India (In Cr)) | 840.2 | ΝΑ | 948.7 | 250.5 |
| Year-on-Year Growth | -9% | -11.50% | -0.50% | 0.30% |
| Revenue CAGR (2 Yr.) | 2.20% | -6.70% | 4.10% | -4.60% |
| Return on Equity (ROE) | 43% | 10% | 38% | 12% |
| Return on Capital Employed (ROCE) | 14% | 15% | 28% | 16% |
| EBITDA Margin,% | 19.60% | 19.60% | 16.60% | 22.10% |
