Shares of Cigniti Technologies rose more than 5% on Monday after it appointed Srinivas Kandula, former chairman and CEO of Capgemini India, as an executive director to its board.

Kandula will work closely with Chairman and Managing Director CV Subramanyam in his new role to provide strategic direction and input to all functions. “Srinivas’ deep and diverse experience will help Cigniti Technologies accelerate its journey to become a multi-billion dollar quality-first software and digital engineering services company,” said Subramanyam.

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

Cigniti is a Hyderabad-based software and digital engineering services company with digital assurance and software testing as its main source of revenue. The company is now focused on expanding its digital engineering expertise in data and insights, business intelligence/visualisation, artificial intelligence/machine learning, product and platform engineering, and blockchain.

In Q3FY23, the company’s net profit surged 75.33% to Rs 46.55 crore, compared to a net profit of Rs 26.55 crore reported a year ago. Sales rose 31.50% to Rs 427.99 crore from Rs 325.46 crore last year.

In a recent interview with CNBC TV-18, the company’s management was cautiously optimistic about near-term growth, with 32 of its 60 customers agreeing to raise prices by 7-10%. The digital engineering drive is expected to account for 18% of sales in FY24, up from 9% in FY23, and bring the company’s margins to 16% in FY24.

The company’s market capitalisation has increased by more than 60% in the past 1 year and has increased by more than 40% so far this year.

The stock was up 4.09% at Rs 776.50 at 11:30 am, while the industry benchmark Nifty IT Index was down 0.76% at 28,478.80.