Cognizant March quarter net up 37.6% to $505 mn
IT company Cognizant has reported a 37.6% rise in its March quarter net income at $505 million, and said it expects its revenue to grow 7-9% during the year.
The company, which follows January-December financial year, said its net profit was at $367 million in the March 2020 quarter.
The US-headquartered company, which has about 200,000 employees based in India, saw its March 2021 quarter revenue growing 4.2% to $4.4 billion over the year-ago period.
“In the first quarter, we successfully executed our strategy of embracing digital, investing in international expansion and repositioning the Cognizant brand. Cloud migration and digital adoption create a significant opportunity for Cognizant in the coming years,” Cognizant chief executive officer Brian Humphries said.
He added the ongoing humanitarian crisis, especially in India, is deeply concerning.
During an investor call, Humphries said Cognizant is making a multi-million dollar investment to assist India through the crisis.
“This is focused on covering operational expenses at hospitals throughout India that are caring for Covid-19 patients. Funding the efforts of UNICEF in
India to deploy oxygen generation plants, Covid diagnostic testing and medical supplies and partnering with one of India’s leading hospital chains to set up vaccination centers in locations across the country, including some of Cognizant’s own facilities,” he added.
This is in addition to the ongoing support of associates, which includes homecare and hospitalisation assistance, vaccination cost reimbursement for associates and their families, and making vaccine availability easier for those with disabilities, he noted.
“The impact of the pandemic on industry attrition rates, absenteeism and client delivery remains somewhat uncertain. We monitor our situation daily, and we’ll continue to prioritise the health and safety of our associates while serving our clients who’ve been particularly sup
portive in recent weeks,” Humphries said.
Cognizant said it expects its June 2021 quarter revenues to grow 10.5-11.5% to be between $4.42 billion and $4.46 billion. Revenue is expected to be $17.8-18.1 billion for the full fiscal year, up 7-9%.
Digital revenue grew about 15% year-on-year and now represents 44% of the revenue, up from 39% in prior year-period.
“Our first-quarter performance reflects solid revenue growth in our digital services and consistent execution of our strategy. To support our commercial momentum, we are increasing our investments in recruiting and talent,” Cognizant chief financial officer Jan Siegmund said.
Cognizant’s total headcount stood at 296,500 people with voluntary attrition at 18%.