Cognizant Q1 net profit 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 firm, 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.

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 centres in locations across the country,” he added.

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 supportive in recent weeks,” he 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-onyear and now represents 44% of the revenue, up from 39% in prior year-period.