Cognizant now in close contest with Wipro for third place among Indian IT companies!
According to the latest reports in the press, Cognizant is now in close contest with Wipro for a position among the top three Indian IT services companies. The IT services firm Cognizant recently posted an unexpected 37.5 per cent jump in net profit at $208.32 million for the January-March quarter with good forecasts for the second quarter. A net profit of $208 million, against $151 million last year in the same quarter indicates robust growth. Cognizant’s first quarter revenues touched $1.37 billion, going up by 43 per cent compared to the same quarter last year.
According to its own projections for its June quarter, the company will grow to at least $1.45 billion. There is thus a good possibility that Cognizant may seize Wipro’s place as the third largest Indian IT company in terms of revenue as Wipro’s guidance for the quarter stands at $1.42 billion. For the year 2011, it expects revenue to grow at 29 per cent from 2010 to $5.92 billion.
Despite the economic slowdown, the company has shown a growth of around 15 percent mainly due to its strong presence in the supposedly recession-proof segments like Healthcare and the company’s focus on manufacturing, retail and logistics to cope with the downturn. The strategy has proved fruitful as Cognizant’s banking and financial services revenues are now on par with Infosys. Both TCS and Infosys have over 40 per cent of their revenues coming from the financial services segment. Cognizant is now focusing on enhancing its presence in newer areas and business services like logistics and communications, media and entertainment.