Cognizant posts 21 p.c. net growth, ahead of Infosys

Cognizant Technology Solutions (CTS) reported a better-than-expected profit in its second quarter results for 2012.

During the quarter, Cognizant's net income rose to $251.9 million, from $208 million in the corresponding period last year, and revenue was up 21 per cent to $1.795 billion, largely due to increased demand for its outsourcing services.

According to CIOL reports;this growth has propelled Cognizant ahead of industry peer Infosys Limited, to make it the second largest IT services company in India .

Buoyed by the positive growth, the company also revised upwards its full-year profit guidance to 20 per cent revenue growth. In stark contrast to the industry trend, when major players Infosys and Wipro Limited had grim forecasts, Cognizant's forecast comes across as a bold statement, even bettering industry body NASSCOM's growth guidance of 11-14 per cent for the year.

The company now expects full-year adjusted earnings of at least $3.64 per share, up from its previous forecast of $3.62 per share. It reaffirmed its revenue forecast of at least $7.34 billion. Analysts on average were expecting full-year earnings of $3.37 per share on revenue of $7.34 billion.

Over the second quarter, CTS had a net addition of around 4,700 employees, which made the overall headcount 145,200 as of June 30, 2012.

(With inputs from CIOL)