Cognizant, the Nasdaq listed IT services firm, continued with its growth momentum by revising upwards its annual revenue guidance for the second time this year, while registering a 5.5% sequential decline in net profit at $397.2 million for the September quarter.
It has guided to a revenue of $12.41 billion for FY15 – the company follows the January-December fiscal – translating into an annual growth rate of 21% as compared to its earlier projection of 20.1%.
The hit in net profit was primarily due to interest expense and currency fluctuations, the company said. On a year on year basis, Cognizant posted a 11.7% growth. Cognizant reported a revenue of $3.19 billion recording a sequential growth of 3.3%.
“We experienced another quarter of strong performance, building on our solid momentum in the first half of the year with continued broad-based demand across key industries and geographies we serve,” said Cognizant CEO Francisco D’Souza.
Its operating margins for the quarter was 19.4% which is well within the company’s target range of 19-20%. During the quarter, Cognizant saw its two main business verticals – financial services and healthcare which account for 70% of the revenues boosting the growth momentum. The healthcare vertical recorded a sequential growth of 4.7% while for the financial services it was 2.7%.