Cognizant Q3 revenue down 30% to $348 million

NEW DELHI: IT main Cognizant has reported about 30 per cent drop in September quarter web revenue at $348 million (round Rs 2,578.three crore).
The US-based firm, which posted a web revenue of $497 million in September 2019 quarter, stated it expects its FY2020 income to be “on the excessive finish of the beforehand guided vary of roughly $16.7 billion”.
For the September 2020 quarter, Cognizant’s income was nearly flat at $4.2 billion, together with a unfavourable 130 foundation factors influence from the exit of sure content material companies, Cognizant stated in a press release.
Cognizant – which has about 2 lakh workers based mostly in India – follows January-December as monetary yr.
“In opposition to a difficult demand setting, we continued to strengthen our portfolio, execute our digital technique and improve our competitiveness,” Cognizant chief govt officer Brian Humphries stated.
Shoppers are realising they will distinguish themselves in the event that they embrace disruption and rework, and the corporate is dedicated to creating that simple for them, he added.
Cognizant’s headcount stood at 2,83,100 on the finish of the September 2020 quarter.
The corporate stated its year-to-date bookings elevated 15 per cent, and because the starting of the third quarter until October 27 it has returned to shareholders over $700 million by way of share repurchases and $120 million in dividends.
“FY2020 income is predicted to be on the excessive finish of the beforehand guided vary at roughly $16.7 billion, or a decline of 0.Four per cent in fixed forex,” the corporate stated.
In FY2019, the corporate had posted a income of $16.eight billion.
“Our price self-discipline and powerful year-to-date money movement enabled continued investments in development initiatives. We took additional actions to extend our monetary flexibility in assist of our strategic priorities,” the agency’s chief monetary officer Jan Siegmund stated.
For the reason that starting of the third quarter, Cognizant has returned over $800 million of capital to shareholders by way of share repurchases and dividends, Siegmund added.
By way of verticals, Cognizant noticed its monetary companies (34.6 per cent of topline) income decline 1.5 per cent year-on-year, pushed by declines in each banking and insurance coverage.
Progress in regional banks and capital markets in North America was offset by weak point in choose international banking accounts and in Europe, Cognizant stated.
Income of healthcare, which accounts for 29 per cent of the entire revenues, grew 4.eight per cent year-on-year, pushed by life sciences.
Progress in bio pharmaceutical purchasers and income from acquisition of Zenith Applied sciences offset weak point in medical machine purchasers, it stated.
Merchandise and assets income was down Four per cent year-on-year. The decline was pushed by retail, client items, journey and hospitality purchasers that have been significantly adversely affected by the pandemic, partially offset by double-digit fixed forex development in manufacturing, logistics, power and utilities, Cognizant stated.
Merchandise and assets accounted for 21.9 per cent of the entire income.
Communications, media and expertise elevated 0.2 per cent year-on-year and contributed 14.5 per cent of the entire income.
The corporate stated the communication and media vertical grew 0.2 per cent year-on-year.
“Progress inside our communications and media purchasers was greater than offset by a unfavourable 920 foundation level influence from our 2019 strategic choice to exit sure content material associated companies,” Cognizant stated.
Excluding that influence, communications, media and expertise grew roughly 9 per cent in fixed forex.

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