European demand boosts Cognizant net

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: May 08, 2013 08:58 IST

Software services major Cognizant Technology Solutions on Wednesday reported a 17% rise in net profit to $284 million (Rs 1,538 crore) during the January-March quarter and maintained its outlook of 17% revenue growth for 2013, helped by strong demand from Europe.

The company follows a Janu­ary-December financial year.

Revenues during the quarter stood at $2 billion (Rs 10,930 crore) during the quarter compared to $1.7 billion (Rs 9,252 crore) during same period last year.

First-quarter sales from Europe rose 23%, outpacing a 16% growth in North America.

“Our performance during the first quarter was strong and we are encouraged by the healthy demand for our broad range of services,” said Francisco D' Souza, CEO of Cognizant Technology.

Instability in Europe has forced companies in the continent to outsource and cut costs. But Cognizant has been able to win a larger share of the business by accepting lower margins than rivals.

Europe accounts for nearly a fifth of Cognizant’s revenue. Indian rivals such as Tata Consultancy Services, Infosys Ltd and Wipro reported mixed results for the January-March quarter, highlighting a shaky recovery in client demand.

Though the company is not listed in India, yet about 75% of its over 1.6 lakh employees are based in India. Cognizant added 6,000 people during the quarter.

 

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