Cognizant Q3 net rises 11.3%

Net profit of the firm stood at $355.6 million, though, on a sequential basis, it declined 4.3 per cent.

Cognizant, the Nasdaq-listed IT services major with a large presence in India, has reported an 11.3 per cent year-on-year rise in net profit for the third quarter ended September 30, in line with estimates, even as it raised its annual revenue guidance.

Net profit of the firm stood at $355.6 million, though, on a sequential basis, it declined 4.3 per cent.

The IT services major, which competes with the likes of TCS, Infosys and Wipro, revised its annual revenue guidance to the 14.6-15 per cent range, translating into $10.13-$10.16 billion for 2014.

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At the end of second quarter, the company had in fact lowered its revenue guidance to per cent from 16 per cent.

For the third quarter, Cognizant reported a revenue of $2.58 billion, recording sequential growth of 2.5 per cent (11.9 per cent year-on-year). The IT major has for the fourth quarter given a revenue growth guidance of 1.1-2.3 per cent. Its global headcount is now close to 2 lakh.

The company’s operating margin was 19.5 per cent for the quarter, within its target range of 19-20 per cent. FE