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Cognizant Technology Solutions has reported yet another solid quarter to beat its main Indian competitors, including Tata Consultancy Services, in both revenue growth and profitability growth.
The US-based software company with development centres in India reported double digit growth in the September 2015 quarter, its third, in both net profit and revenue when compared to the quarter a year ago while its top three competitors — TCS, Infosys and Wipro – maintained single-digit growth in both in the September quarter, the second for them. Cognizant said that its net profit for the September quarter was $396 million, up 11.7 per cent over the same quarter previous year. Revenue increased by 23.5 per cent to $3.19 billion ($2.58 billion).
Cognizant expects to end the fourth quarter 2015 with revenue of at least $3.23 billion and end the year with revenue of at least $12.41 billion, up 21 per cent compared to 2014, says the release.
“We experienced another quarter of strong performance, building on our solid momentum in the first half of the year with continued broad-based demand across key industries and geographies we serve,” said Francisco D’Souza, Chief Executive Officer of Cognizant.
Digital drive The third quarter results and increased guidance for the full year demonstrate that clients are turning to Cognizant to help them transition into digital enterprises while optimising their traditional investments in technology and business processes, said Gordon Coburn, President, Cognizant.
Karen McLoughlin, Chief Financial Officer, told analysts that the overall pricing was stable during the quarter.
It added seven strategic customers in the quarter, defined as clients that have the potential to generate at least $5-50 million or more in annual revenue, bringing the total number of strategic clients to 292.
During the quarter, Cognizant had around 1,300 net employee additions to end the quarter with 219,300 employees globally, she said. Third quarter annualised attrition this year, at 20 per cent, which was higher than normal.
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