Cognizant logs 12% quarterly profit rise

Buoyed by a strong growth in healthcare and digital services business, IT major Cognizant on Wednesday posted a 11.69 per cent rise in net profit for the September quarter and has revised upwards its annual revenue for the third time this year. 

The US-based firm now expects its revenues to grow at least 21 per cent from last year compared to a guidance of 19.3 per cent growth given at the beginning of the year.

"Cognizant is increasing its full year revenue guidance to reflect the healthy demand environment and the over-performance during quarter three. Cognizant is increasing its full year revenue guidance to at least $12.41 billion, representing revenue growth of at least 21 per cent over 2014," Cognizant CFO Karen McLoughlin said.

The company's net profit has grown to $397.2 million in the July-September 2015 quarter, while revenues jumped 23.47 per cent to $3.18 billion from $2.58 billion in the same quarter last year. The US-based firm had guided for its revenues to be at least $3.14 billion in the third quarter of 2015.

"We experienced another quarter of strong performance, building on our solid momentum in the first half of the year with continued broad-based demand across key industries and geographies we serve," Cognizant CEO Francisco D'Souza said.

Healthcare vertical registered the highest growth at 43.3 per cent, accounting for $939.2 million or about 30 per cent of the quarter's total revenue. 

"Our balance sheet remains very healthy. Cognizant recorded another quarter of strong cash generation, resulting in an increase of almost $500 million in cash and short term investments," McLoughlin said.