U.S.-based IT services company Cognizant, which has 70% of its workforce in India, on Thursday posted an 11.48% increase in net income to $563 million for the first quarter ended March on account of growth in digital revenue.
The company had registered net income of $505 million a year earlier.
Cognizant also said it plans to hire more than 50,000 freshers from campuses in India and expects to cross revenue of $20 billion this year.
The firm’s revenue increased by 9.65% to $4.82 billion from $4.4 billion in the corresponding quarter of 2021.
“For the first quarter, we reported revenue of $4.8 billion, up 10.9% year-over-year in constant currency. Our strategic repositioning over the last few years has enabled us to engage more deeply with clients to help them succeed, while supporting our growth trajectory.
“Our portfolio and capabilities are in strong demand as digital technologies move into the heart of organizations’ operating models and processes,” Cognizant CEO Brian Humphries said.
Cognizant’s digital revenue grew 20% year-over-year. The company met its revenue guidance for the March 2022 quarter.
“Our first quarter performance reflects strong revenue growth in our digital portfolio and a healthy demand environment. We remain focused on investing to support growth opportunities while also executing on pricing to offset the impact of compensation pressure driven by the continued labour supply-demand imbalance,” Cognizant Chief Financial Officer Jan Siegmund said.
The company moderated its guidance for annual revenue growth to 9-11%.
“Our revised guidance is now $19.8 to $20.2 billion, representing 9 to 11% growth in constant currency, positioning us to surpass $20 billion in annual revenues for the first time,” Mr. Humphries said.
Cognizant had earlier given 2022 revenue guidance in the range of $20 to $20.5 billion.
Cognizant India Managing Director Rajesh Nambiar said the company’s global headcount has increased to more than 3,40,000 today from 289,500 in 2020.
“India is our digital talent hub and the heart of Cognizant. We have over 240,000 associates across the country,” Mr. Nambiar said.
He further said an overwhelming majority of Cognizant’s global delivery leadership team is in India.
“We have been building our base of delivery pyramid from over 10,000 freshers in 2018 to 33,000 freshers in 2021 and we are on track to hire 50,000 freshers from premier campuses across India,” Mr. Nambiar said.