Cognizant Q3 Net up 11.2%; raises revenue forecast for 2014

Strong growth in healthcare and financial services helped IT services major Cognizant post 11.2 per cent jump in net profit to USD 355.6 million for the quarter ended September 30, 2014.
The US-based firm had posted a net profit of USD 319.6 million in the corresponding quarter last year.
Its revenues also grew 12 per cent to USD 2.58 billion in the quarter under review from USD 2.3 billion in the same period last year.
Cognizant expects its revenues for the October-December 2014 quarter to be between USD 2.61 billion and USD 2.64 billion.
Buoyed by the improving sentiment, the firm has also revised its revenue forecast for the year to be between USD 10.13 billion and USD 10.16 billion (higher by 14.5-14.9 per cent), excluding any impact from the acquisition of TriZetto.

While announcing its first quarter results, Cognizant had forecast its 2014 revenue to be at least USD 10.3 billion, higher by 16.5 per cent from 2013. However, at the end of June quarter, it lowered its outlook to at least 14 per cent.

In fiscal 2013, Cognizant's revenue stood at USD 8.843 billion, up 20.4 per cent from 2012.
"Our overall demand environment remains strong and our results this quarter highlight that we are competing, winning and executing transformational engagements for clients in various industry segments globally," Cognizant President Gordon Coburn said.
Financial Services accounted for 41.9 per cent of the quarter's revenue and grew 13.4 per cent year-on-year, while healthcare contributed 25.4 per cent with a growth of 9.2 per cent.

Manufacturing/Retail/Logistics constituted 20.7 per cent of the quarter's revenues and grew 8.6 per cent from Q3 last year.
In terms of geographies, North America accounted for 76.8 per cent of the revenues (11.1 per cent y-o-y growth), Europe 18.3 per cent (13.9 per cent growth) and Rest of World 4.9 per cent (18.2 per cent growth).
"There is a tremendous opportunity in the marketplace as the advent of new digital technologies, global economic pressures, and an evolving regulatory environment force businesses across all industries to change and adapt faster than ever before," Cognizant Chief Executive Officer Francisco D'Souza said.
Cognizant is ideally positioned to help clients worldwide address these competitive challenges with end-to-end solutions that address their dual mandate of improved efficiency and of innovation using the latest social, mobile, analytics, cloud and sensor technologies, he added.