The Hindu Business Line : Cognizant Q4 revenues rise 41 pc

Chennai, Feb. 8 Robust demand in the Banking Financial Services and Insurance (BFSI) segment and three $100-million wins in the healthcare segment have boosted Cognizant Technology Solutions’ revenues for the quarter ending December 2007.

Revenues for the quarter grew 41 per cent compared to the same period last year. The recently-acquired marketRx contributed about $5 million to the quarter revenues.

Unlike most Indian IT companies that reported lower margins due to the slowdown in the US economy (sub-prime crisis and nose-diving housing mortgage loans), Cognizant has experienced increased business.

In the BFSI segment, insurance companies are seeking to automate more back-office functions such as agent self-service portals, automated underwriting and commission systems, so that they can re-deploy their resources in the front office and drive revenues, said a company spokesperson.

Operating margin for the quarter was 17.7 per cent. High discretionary spends across industries were also responsible for lifting the top line. About 49 per cent of quarterly revenues came from application development.

Revenue

For the year ending December 2007, the company reported revenues of $2.136 billion, up 50 per cent from last year. Net profit was $350.1 million compared to $232.8 million for 2006. The year ended with over $670 million in cash and short-term investments.

For the next quarter, Cognizant expects revenues of at least $640 million. Headcount for the next fiscal is pegged between 72,000 and 75,000, a press release said.

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