Cognizant posted a 37.6% increase in net income in the March quarter, to USD 505 million, and said it expects revenue to increase by 7-9% this year. The company's net profit for the March 2020 quarter was USD 367 million, according to the company's financial year, which runs from January to December. The revenue of the US-based firm, which employs around 2 lakh people in India, increased by 4.2 percent to USD 4.4 billion in the March 2021 quarter compared to the same time last year.
“In the first quarter, we successfully executed our strategy of embracing digital, investing in international expansion and repositioning the Cognizant brand. Cloud migration and digital adoption create a significant opportunity for Cognizant in the coming years,” Cognizant Chief Executive Officer Brian Humphries said.He went on to say that the ongoing humanitarian crisis, especially in India, is extremely worrying. Humphries said during an investor call that Cognizant is investing a multi-million dollar to help India get through the crisis.
“This is focused on covering operational expenses at hospitals throughout India that are caring for COVID-19 patients. Funding the efforts of UNICEF in India to deploy oxygen generation plants, COVID diagnostic testing and medical supplies and partnering with one of India’s leading hospital chains to set up vaccination centers in locations across the country, including some of Cognizant’s own facilities,” he added.
This is in addition to associates' ongoing support, which includes homecare and hospitalisation aid, vaccination cost reimbursement for associates and their families, and making vaccine availability easier for those with disabilities, he explained. Cognizant expects sales to increase 10.5-11.5 percent in the June 2021 period, to between USD 4.42 billion and USD 4.46 billion. For the full fiscal year, revenue is estimated to be USD 17.8-18.1 billion, up 7-9%. Digital sales increased by 15% year over year and now accounts for 44% of total revenue, up from 39% in the previous year.