Cognizant Q1 net profit grows 9.7%, raises revenue guidance

Chennai :  Led by strong growth in healthcare business, IT services major Cognizant notched up a 9.7 per cent increase in net profit at USD 382.9 million for the March quarter and also marginally upped its revenue guidance for the 2015 fiscal.         Cognizant’s net profit stood at USD 348.9 million in the first quarter of 2014.

The US-based firm saw its revenue grow 20.2 per cent to USD 2.91 billion in the reported quarter from USD 2.42 billion in the year-ago period, higher than its own guidance of USD 2.88 billion. The better-than-expected numbers are in contrast to those from its Indian counterparts like TCS and Infosys that posted muted quarterly earnings impacted by currency fluctuations.

Cognizant has marginally increased its revenue forecast for the fiscal 2015 to be up at least 19.3 per cent (to USD 12.24 billion) from its earlier forecast of at least 19 per cent growth (USD 12.21 billion) compared with 2014.     For the April-June 2015 quarter, it expects its revenue to be at least USD 3.01 billion. “Our strong revenue performance this quarter versus our guidance was driven primarily by organic growth of our core businesses and is a reflection that our strategy and offerings are resonating with our clients,” Cognizant Chief Financial Officer Karen McLoughlin said on an investor call.     “In addition, we are pleased to increase our full-year revenue and earnings per share (EPS) guidance to reflect the overperformance during the first quarter,” she added. TCS reported 12.4 per cent y-o-y growth in revenue at Rs 24,220 crore while Infosys’ grew 7.8 per cent (constant currency) to USD 2.1 billion in the January-March 2015 quarter.                 Cognizant added about 6,200 employees, taking its total headcount to about 2,17,700 globally. Its annualised attrition, including BPO and trainees, stood at 14 per cent during the quarter.

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