Cognizant India Profits Crash By 40%, Revenues Lower By 5% In Last 6 Months
According to financial data collected by business intelligence platform Tofler, Cognizant recorded a 40% drop in profit from the previous fiscal year, while expenses increased by 6.5 per cent.
Cognizant Revenue For The Financial Year 2021
The revenue for the financial year 2021 was Rs 29,682 crore, down about 5% from the previous year’s figure.
During the fiscal year, profit after tax plummeted by 40% to Rs 3,265 crore. The company reported total expenses of Rs 24,982 crore for the fiscal year, up from Rs 23,452 crore the previous year.
The IT behemoth also lowered its fiscal year projection to 10.2 per cent to 11.2 per cent or 9% to 10% in constant currency terms. In Q1, it forecasted growth of 5.5 per cent to 7.5 per cent for CY21.
Quarterly attrition increased to 31% in the quarter ending June 30, and the company said it plans to hire 100,000 lateral hires this year, as well as thousands of more graduates.
Cognizant’s Voluntary Attrition
The company said that voluntary attrition reached 29% on an annualised basis and 18% on a trailing 12-month basis in the second quarter (Cognizant operates a January-December cycle)
Cognizant now employs over 3,00,000 people for the first time in its history, marking the company’s highest-ever headcount.
Earlier the company stated in its analyst call that it is ramping up its hiring and skilling mechanism. Cognizant intends to hire around one lakh individuals this year. According to the corporation, it hopes to hire new graduates in India by 2022.
“Against this backdrop, we continue to take a series of actions to reduce attrition, including compensation adjustments, job rotations, reskilling and promotions and a host of associated engagement activities…we now expect to hire approximately 100,000 laterals in 2021 and to train close to 100,000 associates,”
Cognizant CEO Brian Humphries said.