Driven by strong demand environment, US-based IT services firm Cognizant on Tuesday posted better-than- expected 37.5 per cent jump in net profit at $208.32 million for the January-March quarter and forecast strong outlook for the second quarter numbers.
The company had a net profit of $208 million, against $151 million last year in the same quarter. Its first quarter revenues touched $1.37 billion, up 43 per cent compared to the same quarter last year.
Cognizant has now indicated that revenue for its June quarter will grow to at least $1.45 billion. That means Cognizant might replace Wipro as the third largest Indian IT company in terms of revenue as Wipro's guidance for the quarter stands at $1.42 billion.
For the year 2011, it expects revenue to grow at 29 per cent from 2010 to $5.92 billion.
"We are pleased with yet another quarter of solid growth as we continue to benefit from a strong demand environment. During this time of significant secular change impacting our clients, we continue to enhance our competitive differentiation," Cognizant President and CEO Francisco D'Souza said in a statement.
Even in the thick of the economic slowdown, the company continued to grow by around 15 percent. This is because of its strong presence in the so called recession-proof segments like Healthcare and an increased focus on manufacturing, retail and logistics during the downturn.
That is now paying off as its banking and financial services revenues are par with Infosys. Both TCS and Infosys have over 40 per cent of their revenues from the financial services segment. Now it is focusing on enhancing presence in newer managed business services like logistics, communications, media and entertainment.
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