Cognizant Trims Full-Year Revenue Growth Guidance For The Third Time This Year
Net profit increased 11.8% to $444.4 million for the July-September quarter.
U.S.-based IT services company Cognizant has posted 11.8 percent increase in net profit to $444.4 million for the July-September quarter compared to $397.2 million in the same period last year.
The IT services major, which competes with the likes of TCS and Infosys, saw revenues rising by 8.4 percent to $3.45 billion in the said quarter, meeting its forecast of $3.43-3.47 billion topline for the said quarter.
However, the company marginally reduced the upper end of its annual revenue guidance. It now expects its topline for FY16 to be in the range of $13.47-13.53 billion, instead of the earlier forecast of $13.47-13.60 billion. Cognizant has cut its full-year revenue growth forecast for the third straight time this year.
The company follows January-December as the financial year.
We see ongoing client demand for our services across industries and geographies. As the physical and digital worlds converge, we have made it easier for clients to work with us by aligning our organisational structure and capabilities around the broader focus of assisting clients drive digital transformations.Francisco D’Souza, CEO, Cognizant
Cognizant Chief Financial Officer Karen McLoughlin said the third quarter revenue was within its guided range, indicating that the company continues to execute well on its stated strategy.
"Our solid performance was also reflected in another strong quarter of cash flow generation as cash and investments, net of debt increased by $390 million," she said.
The company added around 11,500 employees on net basis during the quarter, taking its total headcount to over 2.5 lakh at the end of the September quarter.