Cognizant Technology Solutions has for the first time overtaken Infosys in quarterly revenues.
It has also become the second largest software company in the country after Tata Consultancy Services during the quarter ended June 30, wresting the position from Infosys, which held the slot for almost two decades.
The Nasdaq-listed Cognizant, which has over 75 per cent of its employees working in India development centres, also managed to beat TCS and Infosys in quarterly revenue growth in dollar terms.
Cognizant reaffirming its 20 per cent growth guidance for calendar 2012 should be a welcome relief for Nasscom, which has given a guidance that the industry will grow by 11-14 per cent.
Cognizant reported a 21 per cent increase in net profit to $252 million, compared with $208 million in the second quarter of 2011. Revenue rose to $1.8 billion, up 20 per cent from $1.5 billion. Net headcount increased by over 4,700 during the quarter. Approximately 35 per cent of Cognizant’s gross additions were direct college hires while about 65 per cent were experienced professionals. The company ended the quarter with over 145,000 employees globally.
Gordon Coburn, President, Cognizant, in a press release said that the market downturn, as with those before, is serving as a catalyst for clients to embrace a broader range of services. Clients view Cognizant as a partner to achieve operational improvements in efficiency and effectiveness while simultaneously innovating for the future.
Cognizant expects third quarter revenue to be at least $1.875 billion. Fiscal 2012 revenue is expected to be $7.34 billion, up at least 20 per cent compared with 2011.
The company closed the quarter with 815 active customers and the number of accounts it considers to be strategic increased by 6. This brings its total number of strategic clients to 202, she told analysts in a conference call.