US-based software services firm Cognizant Technology Solutions today posted 17 per cent rise in net profit at USD 243.7 million for January-March,2012. The company had registered a net profit of USD 208.3 million in the first quarter of 2011,Cognizant said in a statement. Cognizant,the third largest software services firm in India after Tata Consultancy Services and Infosys,follows a January-December fiscal. Though it is not listed in India,75 per cent of its over 1.4 lakh employees are based in India and is often referred to as an Indian entity. The revenue of the company grew by 24.8 per cent to USD 1.71 billion in the quarter under review,which was marginally lower than that of Infosys for the same quarter. Analysts had expected Cognizant to replace Infosys as the second largest IT company in terms of revenue for the quarter with its guidance of USD 1.7 billion. Infosys,which follows April-March fiscal,registered 10.5 per cent growth in revenues at USD 1.77 billion for the January-March quarter. "We continue to have a healthy long-term outlook for the business. Our clients recognise that in Cognizant,they have a partner with a strong consulting oriented and industry focused front-end team," Cognizant President Gordon Coburn said. Cognizant has,however,lowered its revenue guidance for 2012 to at least USD 7.34 billion (up at least 20 per cent from 2011),from USD 7.53 billion forecast earlier. "Due to a slower than anticipated acceleration in demand as we entered the second quarter,we are adopting a more conservative stance for the remainder of the year and revising our guidance to at least 20 per cent revenue growth for 2012," Cognizant Chief Executive Officer Francisco D'Souza said. The pecking order for the Indian IT services companies,however,may change with Cognizant at the second slot,as it has forecast a revenue outlook of "at least USD 1.79 billion". This is higher than Infosys' muted guidance of USD 1.77-1.78 billion for the April-June quarter. In the April-June quarter last year,Cognizant for the first time toppled Wipro from its spot as the third largest software exporter in India,with revenues of USD 1.49 billion. Wipro in the same quarter had registered revenues to the tune of USD 1.40 billion. Wipro's revenues in the January-March 2012 quarter stood at USD 1.53 billion. Cognizant added about 2,800 people (net) during the quarter,taking its global headcount to 1.4 lakh as of March 31,2012. It has also announced the expansion of its existing share repurchase program by USD 400 million,bringing the total authorisation under the current repurchase program to USD 1 billion. It has also extended the expiration date for the repurchase program to December 31,2013. To date,USD 423 million of shares have been repurchased under this program,it said. "In addition,we repurchased USD 43 million of shares under our share repurchase program during the quarter and expanded the program to USD 1 billion,reflecting confidence in our growth opportunities,our commitment to drive shareholder value,and our ability to generate strong cash flows," Cognizant Chief Financial Officer Karen McLoughlin said. Cash and cash equivalents stood at USD 1.32 billion as of March 2012.
