Nasdaq-listed IT main Cognizant reported a greater set of numbers for the primary quarter of CY2021, as the corporate noticed restoration in its healthcare vertical. The corporate additionally revised upwards its full 12 months income steerage from 7 per cent to 9 per cent (5.5-7.5 per cent in fixed foreign money). On the finish of its fiscal 12 months in December 2020, the corporate had guided for a income development of 5.5 to eight.5 per cent (4-7 per cent in fixed foreign money).
Income for the primary quarter ended March 31, 2021 grew to $4.4 billion, a development of 4.2 per cent year-on-year, and a couple of.4 per cent in fixed foreign money. Its digital income grew by 15 per cent y-o-y and now represents 44 per cent of its whole income.
“Within the first quarter, we efficiently executed our technique of embracing digital, investing in worldwide enlargement and repositioning the Cognizant model. Cloud migration and digital adoption create a major alternative for Cognizant within the coming years,” stated the corporate’s Chief Govt Officer, Brian Humphries.
He additionally shared his concern over the rising variety of Covid-19 instances in India. “The continued humanitarian disaster, particularly in India, is deeply regarding. We have now made a sequence of investments to help India on this time of want and proceed to prioritise the well being and security of our associates whereas we serve our shoppers,” he stated.
Cognizant has thus far invested $700 million in acquisitions. Monetary companies’ (33.1 per cent of revenues) income grew 0.5 per cent year-over-year, and decreased 1.7 per cent in fixed foreign money. Income development generated by digital companies in each banking and insurance coverage was offset by declining non-digital income as the corporate stated its shoppers continued to optimise the price of supporting their legacy programs and operations.
Healthcare (29.3 per cent of revenues) income grew 7.9 per cent year-over-year, or 7 per cent in fixed foreign money. “Our healthcare income benefited from elevated demand for our built-in payer software program options and continued robust demand amongst our life sciences shoppers,” stated the corporate within the assertion.
In the course of the first quarter, the corporate repurchased 3.1 million shares for $234 million at a median value of $75.80 below its share repurchase programme. As of March 31, 2021, there was $2.6 billion remaining below the present share repurchase authorisation. In Could 2021, the corporate declared a quarterly money dividend of $0.24 per share for shareholders of report on Could 20, 2021. This dividend will probably be payable on Could 28, 2021.
“Our first-quarter efficiency displays strong income development in our digital companies and constant execution of our technique,” stated Jan Siegmund, chief monetary officer, “To help our business momentum, we’re growing our investments in recruiting and expertise,” he stated.
Cognizant reported attrition of 21 per cent for the quarter, with voluntary attrition at 18 per cent, one of many highest within the trade. The corporate has a complete headcount of 296,500 staff.