Cognizant Technology Solutions Corporation, the US-based IT company with a large presence in India, has reported a 39 per cent drop in net profit to $395 million for the fourth quarter ended December 31, 2019 as compared to $648 million in the year-ago quarter.
Quarterly revenue was $4.3 billion, up 3.8 per cent from the year-ago quarter.
"Our steady progress against key initiatives is increasingly evident in our commercial and financial performance," said Brian Humphries, Chief Executive Officer, Cognizant, in a press release. "We enter 2020 with renewed vigour and optimism."
Net profit for the year ended December 31, 2019 was $1.8 billion, down by 14 per cent as compared to $2.1 billion in 2018.
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The company, in its guidance, said the first quarter 2020 year-over-year revenue growth would be in the range of 2.8 per cent to 3.8 per cent in constant currency, which includes estimates for a negative 60 basis points impact from the exit of certain content services business.
Full year 2020 year-over-year revenue growth would be in the range of 2 per cent to 4 per cent in constant currency, which includes an estimate of a negative 110 basis points impact from the exit of certain content services business.
"Our operating performance and strong free cash flows in the fourth quarter reflect the actions taken throughout 2019 to improve our cost structure and instil greater operating discipline across the company," said Karen McLoughlin, Chief Financial Officer.
"Our 2020 outlook reflects our commitment to further improve our cost structure to fund investments in growth. We are executing a balanced capital deployment strategy that is focused on re-accelerating top-line growth through strategic acquisitions and other investments while returning capital to shareholders."