Cognizant's Q4 net up 16%; meets 2012 revenue guidance

Cognizant's Q4 net up 16%; meets 2012 revenue guidance New Delhi: Led by broad-based growth, IT firm Cognizant Thursday posted 16 percent rise in consolidated net income at USD 278.77 million for the October-December quarter, but forecast a lower revenue growth of 17 percent for 2013.

The company's net profit stood at USD 240.12 million in the fourth quarter of 2011, Cognizant said in a statement.

The IT major's revenues increased 17 percent to USD 1.94 billion for the fourth quarter from USD 1.66 billion in the year-ago period, in line with its guidance of "at least USD 1.94 billion."

For the first quarter of 2013, Cognizant expects its revenues to be "at least USD 2 billion".

For whole year 2013, Cognizant expects its revenues to grow at 17 percent to "at least USD 8.6 billion" against 20 percent growth achieved in 2012.

Cognizant's net income grew 19 percent to USD 1.05 billion, while revenues were up 20 percent to USD 7.34 billion in 2012. It had forecast 20 percent growth in revenues for 2012 to be at least USD 7.34 billion.

Cognizant follows January-December fiscal. Though it is not listed in India, about 75 percent of its over 1.56 lakh employees are based in India and is often referred to as an Indian entity.

"When confronting business challenges, clients not only look to Cognizant to help them run their operations better, but increasingly turn to us to help them run their operations differently in order to differentiate themselves in the market and drive top line growth," Cognizant President Gordon Coburn said in a statement.

"Generating broad-based industry leading growth of 20 percent within a tough demand environment of 2012 is a testament to the strength of our business model," Cognizant CFO Karen McLoughlin said.

The company added over 6,300 people in the quarter, taking its headcount to approximately 156,700.

Cognizant's cash and short-term investments balances grew by USD 430 million during the year after covering its USD 480 million of share re-purchases.