Cognizant Q1 net up 11% y-o-y

IT bellwether Cognizant Technology Solutions reported an 11 per cent rise in net profit for the first quarter ended March 31, 2009, at $113.1 million (around Rs 565.5 crore), compared with $101.9 million (around Rs 509.5 crore) during the same quarter a year ago.

Exceeding its revenue guidance, the Nasdaq-listed company’s top line rose to $745.9 million (around Rs 3,779 crore) — up 16 per cent from $643 million (around Rs 3,200 crore) during the same quarter a year ago. Quarterly diluted earning per share (EPS on a GAAP basis) was $0.38 compared with $0.34 in the year-ago quarter.

Cognizant reconfirmed its full-year revenue growth guidance of “at least” 10 per cent and revenue of around $3.1 billion (around Rs 15,500 crore). The company’s second-quarter revenue is estimated to be at least $760 million (around Rs 3,800 crore) and EPS $0.37 on the basis of GAAP. It added around 2,000 professionals during the quarter to take its global headcount to over 63,700. It ended the quarter with approximately $969 million (around Rs 4,800 crore) in cash, short-term and long-term investments.

Earnings for the quarter included $5 million, or $0.01 per share, of non-operating foreign currency exchange losses, primarily resulting from the weakness in the European currencies and the Indian rupee during the period. Cognizant’s performance this quarter (January-March 2009) “once again demonstrates the value of our long-standing approach of continued reinvestment in our business”, said Francisco D’Souza, president and CEO.