Cognizant Earned Record Rs 55 Crore/Day In 90 Days; Profits Increase By 15.6% To Rs 5032 Crore

A 15.6% rise in net profit has been reported by the Nasdaq-listed Cognizant Technology Solutions.

Rise in Net Profit for Cognizant

The net profit has increased from $544 million to $629 million, on the back of a 5.6% rise in revenue in constant currency from the year-ago period to $4.9 billion. The company follows the calendar year. 

The Teaneck, New Jersey-based firm expects its full year 2022 revenue to grow 7% in constant currency to about $19.3 billion. This was lower than the 8.5-9.5% guidance it gave for the full year in the June quarter.

The CEO, Brian Humphries said that “Revenue and bookings were below our expectations as company specific fulfilment challenges were compounded by the impact of an uncertain macroeconomic backdrop. We are confident the steps we are taking will return the company to accelerated growth over the medium to long term.”

Adjust Operating Margins, Digital Revenue, Attrition

From 15.8% in the year-ago period, the adjusted operating margins expanded to 16.4%. Bookings in the quarter declined 2% year-on-year and represented an in-period book-to-bill of approximately 1.0x which resulted in the trailing 12-month bookings of $23.1 billion, which represented a book-to-bill of approximately 1.2x.

The digital revenue of the company grew 7% annually and contributed 51% to the total revenues for the September quarter as digital bookings continued to grow. 

The 255,800 employees company continues to focus on its priority areas of digital engineering, artificial intelligence (AI) and analytics, cloud, and internet of things (IoT).

Driven by the digital services among public sector clients in the UK and insurance clients, the revenue from the financial services grew 1.6% in constant currency. 

Growth was offset by 180 basis points negative impact related to the previously disclosed sale of the Samlink subsidiary, completed on February 1, 2022.

Health Sciences revenue grew 5.5% in constant currency, driven by digital services among pharmaceutical and healthcare payer clients.

Products and resources revenue grew 8.2% in constant currency, driven by digital services among logistics, automotive, consumer goods, and travel and hospitality clients.

Communications, Media and Technology revenue grew 10.4% in constant currency, driven by strength among digital native companies.

The voluntary annualized attrition rate reduced to 29% in the September quarter from 31% in the preceding three months. The total headcount stood at 349,400 employees as of September 30.