Cognizant Q1 net profit rises 7.5%

Written by fe Bureau | Bangalore | Updated: May 8 2014, 12:27pm hrs
Cognizant continued with its strong growth momentum and recorded a 2.8% sequential rise in revenue for Q1 in 2014. It has guided an even higher 3.2-4.5% rise in topline for the second quarter.

For 2014, Cognizant reiterated its annual guidance, provided in February, of at least 16.5% growth with a revenue of $10.3 billion. This will make it the second company from India to cross a topline of $10 billion with the other being TCS.

Cognizant reported a revenue of $2.42 billion while the net profit rose sequentially by 7.5% to touch $348.9 million. For Q2, it gave a revenue guidance between $2.50 billion and $2.53 billion, a sequential growth of 3.3-4.5%.

CEO Francisco DSouza said, Our broad set of capabilities and our compelling value proposition enable Cognizant to help clients simultaneously run better and run different, by not only driving efficiency in their current operations, but also helping them to reimagine and redesign their business models.

The strategy of maintaining an operating profit margin in the range of 19-20% and reinvesting any surplus back into the business has been paying rich dividends for the company.

President Gordon Coburn said, ... reinvesting in our business across all of our growth horizons is paying off. As the impact of digital technologies increasingly becomes a CEO-level agenda item, Cognizant is well positioned to capitalise on this trend.