Cognizant Q2 net up 36% at $141 mn, steps up 2009 revenue guidance

Cognizant Q2 net up 36% at $141 mn, steps up 2009 revenue guidance

New Delhi: Amid a challenging economic environment, IT service provider Cognizant Technology Solutions on Tuesday reported 36% jump in its second quarter net profit at $141 million, besides revising its revenue forecast upwards at 11.5% for 2009.

“Despite a fluid economic environment, we posted industry-leading revenue growth this quarter, which demonstrates the resilience of our business model and our ability to adapt to evolving client needs," CEO Francisco D’Souza said in a statement.

The company gained from forex volatility in the quarter.

“Earnings for the quarter included $14.1 million of pre-tax non-operating foreign currency exchange gains, primarily resulting from favorable fluctuations in European currencies and Indian Rupee during the period," it added.

The company posted a revenue of $776.6 million for the second quarter ended June 2009, up 13% from $685.4 million posted in the corresponding period last year.

Net profit of Cognizant stood at $141.3 million, up 35.9% to $103.9 million a year earlier.

Bullish on the growth prospects D’Souza said, “We are convinced that technology will play an integral role in the global economic recovery, and Cognizant is well positioned to capitalize on the unfolding opportunities."

The Nasdaq-listed company had earlier forecast its revenue to grow by 10%. It expects to close the fiscal 2009 with revenues of at least $3.14 billion.