Mumbai: Cognizant Technology Solutions Ltd, a US-headquartered software services company with most of its operations in India, said net profit for the first quarter ended 31 March 2007 rose 60% from the year ago period, driven by significant growth in revenues from Europe.
Net profit was $75.4 million, or Rs310 crore, compared with $47.2 million a year ago. Sales rose 61% to $460.3 million driven by the company’s relatively new service offerings in industries such as retail, manufacturing and logistics. Sales in Europe continent grew 84%.
Cognizant said it expects to cross $2 billion in revenues for the year, which will bring it one step closer to the top Indian software companies–Tata Consultancy Services Ltd, Infosys Technologies Ltd and Wipro Ltd, all of whom have revenues in excess of $2 billion.
As of now, Cognizant leads other tech-services companies that are either India-based or have significant part of their operations here, with revenues of $1.42 billion for calendar 2006.
Other firms that reported comparable revenues for the same period include Satyam Computer Services Ltd, which reported $1.26 billion revenues from software services in 2006, and HCL Technologies Ltd that had sales of around $1.15 billion.
Cognizant president and chief executive officer Francisco D’Souza said the projections for the rest of the year are strong because of growth in Europe, which now represents approximately 14% of the company’s total revenue, and is continuing to outpace the company average.
Cognizant also expanded into South America following key clients such as diaper and tissue maker, Kimberly Clark Corp.
D’Souza added that Cognizant is seeing rising demand for business software services, such as enterprise resource planning, software testing and business process outsourcing.