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Cognizant March quarter net profit rises 11% to $563 million

The tech company’s total revenue grew to $4.8 billion in the March quarter, a 9.7% jump or a 10.9% increase in constant currency, both on a year-on-year basis.

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Financial services, the company’s largest business segment, generated a revenue of $1.5 billion, 4.8% higher year-on-year, or a 6% year-on-year jump in constant currency.

Cognizant Technology Solutions on Thursday said that its net profit for the quarter ended March rose 11.4% to $563 million on a year-on-year basis, thanks to strong demand for all its business units that contributed positively to the company’s performance. Financial services, the company’s largest business segment, generated a revenue of $1.5 billion, 4.8% higher year-on-year, or a 6% year-on-year jump in constant currency. Its next biggest unit, healthcare, clocked a revenue of $1.4 billion, 8.1% higher year-on-year or a 8.8% climb in constant currency.

Its third largest division, products and resources grew 13.2% year-on-year, or a 14.9% increase in constant currency to $1.1 billion while its smallest segment, communications, media and technology helped generate a revenue of $0.8 billion, 18.1% higher or a 19.9% increase year-on-year, in constant currency. The tech company’s total revenue grew to $4.8 billion in the March quarter, a 9.7% jump or a 10.9% increase in constant currency, both on a year-on-year basis. Its adjusted EPS stood at $1.08, higher than $0.97 announced for the same quarter last year.

In the aforementioned quarter, the company also repurchased 5 million shares totalling to $444 million, at an average price of $88.22 under its share repurchase programme, according to a regulatory filing.The company expects its revenue to be between $4.90 and $4.94 billion., a notch higher than $4.8 billion reported in the previous quarter. For the whole of 2022, it forecast the revenue to be in the $19.8-$20.2 billion range, about 7.2%-9.2% higher or a 9.0%-11.0% increase in constant currency.

“While the economic backdrop is uncertain, we remain optimistic about the demand outlook for our solutions. Our strategic repositioning enables us to engage more deeply with clients, helping them succeed, and supports our growth trajectory,” said Brian Humphries, Cognizant’s chief executive officer who called the market an intensely competitive global labor market.The Nasdaq-listed company follows January to December for its financial year assessment.

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