Cognizant net up 16%

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  • Published 8.02.13

New Delhi, Feb. 7: Cognizant today posted a 16 per cent rise in net profit at $278.77 million on the back of $1.94 billion revenues, maintaining its lead over Infosys for the third consecutive quarter.

The Nasdaq-listed firm has, however, forecast a lower revenue growth of 17 per cent for 2013 to “at least $8.6 billion”, compared with 20 per cent growth achieved in fiscal year 2012.

Net profit of the company, which follows a January-December fiscal, stood at $240.12 million in the fourth quarter of 2011.

Revenues increased 17 per cent to $1.94 billion in the December quarter from $1.66 billion a year ago.

For the first quarter of 2013, Cognizant expects its revenues to be “at least $2 billion”.

The results are in line with the performance of rivals — Tata Consultancy Services and Infosys, which reported better-than-expected earnings on the back of client additions and higher IT spending by existing customers.

TCS’ revenues in the October-December 2012 quarter stood at about $3 billion, while that of Infosys and Wipro stood at $1.9 billion and $1.57 billion, respectively.

Though it is not listed in India, about 75 per cent of Cognizant’s over 1.56 lakh employees are based in India and is often referred to as an Indian entity.

Cognizant acquired MediCall, a medical management services firm with operations in the Philippines, in middle of the December quarter.

Ceat net

Tyre maker Ceat Ltd today reported a nearly three-fold jump in consolidated net profit for the third quarter ended December at Rs 22.44 crore, propelled by higher sales volume and lower raw material cost. Net profit stood at Rs 8.12 crore in the year-ago period.