Calcutta, May 7: IT services major Cognizant has posted a 22.8 per cent rise in net profit at $348.9 million in the January-March quarter on the back of a strong growth in the UK and higher spending by clients on consulting and technology services.
The New Jersey-based firm had a profit of $284.2 million in the first quarter of 2013.
Revenues in the first quarter of 2014 increased 19.9 per cent to $2.42 billion, in line with the company’s forecast.
Business in the UK region, which accounted for 11.5 per cent of the quarter’s revenues, grew 28.2 per cent year-on-year to more than $1 billion.
“The strength in the UK revenue came from multiple clients across several industries, including financial services and high technology. Consulting and technology services was up 5.5 per cent sequentially and 23.7 per cent year over year,” Cognizant chief financial officer Karen McLoughlin said.
Consulting and technology services (formerly known as application development) and outsourcing services (formerly known as application management) represented 51 per cent and 49 per cent of revenues, respectively, during the quarter.
Outsourcing services were essentially flat sequentially and up 16.1 per cent from the year-ago period.
Cognizant expects revenues to increase to between $2.5 billion and $2.53 billion in the second quarter from $2.16 billion a year earlier.