Cognizant Q2 net up 21% at Rs 921 cr

IT company Cognizant today reported a 20.83% jump in its net profit to Rs 921.12 crore ($208.04 million) for the second quarter ended June 30, on the back of strong demand for outsourcing services.

The company had posted a net profit of Rs 762.30 crore ($172.17 million) in the same period last year, Nasdaq-listed Cognizant Technology Solutions Corporation said in a statement.

"We continue to see stronger than anticipated demand for our increasing range of services across the industries we serve," Cognizant President and CEO Francisco D'Souza said.

"Over this past year, we have seen clients seeking our services not just to drive operational efficiencies, but also to transform their businesses to adapt to next generation technologies and to a new generation of 'born digital' workers and consumers," he added.

In the April-June 2011 period, the company's revenue rose to $1.48 billion from $1.10 billion in the second quarter of 2010, a growth of 34.4%.

Looking ahead, the company said it is expecting a revenue of $1.57 billion in the third quarter.

For the entire 2011 fiscal, it has projected a revenue of at least $6.06 billion, up 32% from 2010.

"Strong cash flows during the quarter allowed us to increase our cash and short-term investment balances to approximately $2.27 billion, while expanding our share repurchase program," Cognizant Chief Financial and Operating Officer Gordon Coburn said.

Cognizant repurchased over $96 million of shares during the quarter, he added.

"As our business continues to expand to meet growing client demand, including over 7,100 net employee additions during Q2, we are successfully scaling our people, processes and infrastructure to support this growth and the increasing complexities of the business," Coburn said.