Cognizant outpaces Infosys
Cognizant has been outperforming its peers for more than 17 quarters in a row.
By TNN |
CHENNAI: Indian software companies are an envied lot by the smoke and stack ones, be it attracting talent or reporting profits. But, within the new economy sector, it is indeed fascinating to see one outscore the other. Even as TCS, Infosys and Wipro has been credited with showcasing Indian technology might, Cognizant is quietly displacing the credits that these companies have earned rather assiduously.
And Cognizant’s performance is just not a flash in the pan. It has been outperforming its peers for more than 17 quarters in a row. Any which way one slices Cognizant’s revenue growth, from $100 million to $250 million, $250 million to $500 million and so on, in each phase of its growth, the company has outperformed all its peers, including the larger ones.
From $100 million to $250 million, while Infosys and Wipro took 12 quarters each and Satyam reached the milestone in 16 quarters, Cognizant managed to do it in just nine quarters. Likewise, while Infosys grew from $250 million to $500 million in eight quarters and Wipro in nine quarters, Cognizant is all set to do it in six quarters going by its June 2007 quarter (revenue guidance of atleast $500 million). Satyam is yet to get there as it reported revenues of $411 million in the March 2007 quarter. TCS figures have been made available only after it went public.
Though there is growth in revenues and in profits for Cognizant much faster than its peers, there is a section which believes that this has been possible as it has been sitting on cash. The board of directors of Cognizant announced that it has earned a revenue of $460.30 million for the first quarter of the 2007 fiscal, up by 8% on a sequential basis and 61% from the year ago period. Net income rose to $75.4 million compared to $47.2 million in the first quarter of 2006.
And Cognizant’s performance is just not a flash in the pan. It has been outperforming its peers for more than 17 quarters in a row. Any which way one slices Cognizant’s revenue growth, from $100 million to $250 million, $250 million to $500 million and so on, in each phase of its growth, the company has outperformed all its peers, including the larger ones.
From $100 million to $250 million, while Infosys and Wipro took 12 quarters each and Satyam reached the milestone in 16 quarters, Cognizant managed to do it in just nine quarters. Likewise, while Infosys grew from $250 million to $500 million in eight quarters and Wipro in nine quarters, Cognizant is all set to do it in six quarters going by its June 2007 quarter (revenue guidance of atleast $500 million). Satyam is yet to get there as it reported revenues of $411 million in the March 2007 quarter. TCS figures have been made available only after it went public.
Though there is growth in revenues and in profits for Cognizant much faster than its peers, there is a section which believes that this has been possible as it has been sitting on cash. The board of directors of Cognizant announced that it has earned a revenue of $460.30 million for the first quarter of the 2007 fiscal, up by 8% on a sequential basis and 61% from the year ago period. Net income rose to $75.4 million compared to $47.2 million in the first quarter of 2006.
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