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Cognizant Technology net profit up 15.4 pct to $319.6 mn,ups revenue target to 20.3 pct

Cognizant Technology reported a 15.4 per cent rise in net profit at USD 319.6 million.

Written by PTI | Mumbai | Published: November 5, 2013 6:30:02 pm

Leading software outsourcing firm Cognizant Technology today reported a 15.4 per cent rise in net profit at USD 319.6 million in the quarter to September driven by a strong ramp up in demand for outsourcing services,up from USD 276.9 million a year ago.

Cognizant Technology revenue rose 6.7 per cent to USD 2.31 billion on a sequential basis and 21.9 per cent (USD 1.89 billion) on a y-o-y basis.

“Our performance during the quarter was stronger than anticipated due to a faster ramp up in demand for outsourcing services and strong discretionary spend on consulting and technology services,” Cognizant president Gordon Coburn said in a statement.

Continuous reinvestment in business continues to help Cognizant strengthen its capabilities to address clients’ dual mandate of driving greater performance,he added.

The US-based firm with 75 per cent of its workers located in the country,has also revised its full year revenue target.

For 2013,it now expects revenue to be at least USD 8.84 billion,a growth of at least 20.3 per cent over 2012. The company had given a guidance of 19 per cent growth in revenue (USD 8.74 billion) compared to 2012.

“We delivered yet another quarter of industry-leading growth that was broad-based across our portfolio of industries,services and geographies,” company’s Chief Executive Francisco D’Souza said.

The sheer velocity of change in the industries that Cognizant serves is driving the C-suite to challenge the status quo and rethink their business models to be relevant for the future,he added.

“Our investments across multiple horizons of growth position us well to deliver differentiated value as we partner with clients in this journey,” he said.

Last month,Cognizant Technology’s competitors,including TCS and Infosys,had reported robust results driven by reviving demand in the US,which accounts for over 60 per cent of the domestic IT industry’s revenues.

Cognizant Technology added 2,100 people (net) in the quarter,while increasing total cash and short-term investments by USD 460 million to about USD 3.4 billion.

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