Cognizant Q4 profit up 16.3 percent, conservative over outlook

The Indian IT services firm posted a profit of US$324.3 million on broad-based growth. It is forecasting conservative growth of 16.5 percent for 2014, slightly below expectations after increasing signs of an industry rebound.

Cognizant has booked a fourth quarter profit of US$324.3 million, up 16.3 percent on year thanks to broad-based growth.

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This was on the back of a 20.9 percent jump in revenue from the previous year at US$2.35 billion. Its net headcount addition for the same period was 5,000, taking total staff numbers to around 171,400, noted TOI.

"This strong growth was fuelled by our clients' on-going drive to 'run better' for more efficient and productive operations and to 'run different' to create the capabilities and business models they need for future success," said  Gordon Coburn, president of Cognizant.

He added the healthy demand environment witnessed in 2013 will continue into 2014 and Cognizant would be well-positioned to capture it.

However, the company gave a rather conservative revenue growth guidance of 16.5 per cent for 2014, below its growth of 20.4 percent in 2013. This was a surprise to some analysts considering the relatively more upbeat guidance from rivals based on signs of a rebound.