Cognizant net up 11.48 pc in Q3; revenues zoom to $ 1.60 billion

NEW DELHI: US-based IT services giant Cognizant today posted 11.48 per cent growth in net profit to $ 227.1 million for the third quarter ended September 30, 2011.

It had recorded net profit of $ 203.7 million in the July-September quarter last year.

The company's revenues grew 31.6 per cent to $ 1.60 billion during Q3, 2011 from $ 1.21 billion in the same quarter last year, Cognizant said in a statement.

"In spite of persistent macro-economic uncertainties, clients throughout the world continue to invest thoughtfully and strategically in their businesses and are directing investments toward building agility to drive the dual mandates of operational efficiency and business transformation," Cognizant President and CEO Francisco D'Souza said.

Cognizant's continued investments across multiple service horizons help address these dual mandates and drive superior business value regardless of the economic environment, he added.

Looking ahead, the company said it is expecting a revenue of $ 1.66 billion in the fourth quarter. For the year 2011, revenue is expected to be at least $ 6.11 billion, up at least 33 per cent compared to 2010, the company said.

"We stepped up our share repurchase program by spending over $ 163 million to repurchase shares during the quarter, reflecting confidence in our ability to generate strong cash flows," Cognizant Chief Financial and Operating Officer Gordon Coburn said.

Net headcount addition for the quarter exceeded 12,000, which included about 4,000 employees from the CoreLogic India acquisition, it said.

Earlier this year, Cognizant acquired CoreLogic's Indian operation for a cash payment of $ 50 million.