Chennai: IT major knowledgeable 11% Posted on Thursday Revenue In constant currency terms for the July-September quarter, there has been an increase of $4.7 billion on a year-on-year basis. Sequentially, revenue increased marginally from $4.6 billion posted in the April-June quarter. Cognizant’s net income was up nearly 6% to $544 million from last quarter’s $544 million.
The company lowered road estimates in terms of revenue growth and marginally increased its revenue guidance for full-year 2021.
Cognizant’s revenue growth performance lags behind its rivals TCS And Infosys for a comparable period. TCS posted around 15% YoY revenue growth (CC terms) and Infosys’ revenue grew around 19% in the quarter.
Unprecedented demand-supply mismatch
An unprecedented demand-supply mismatch in the IT job market continues to impact IT Belvedere’s talent retention efforts as attrition The record high has been reached.
Quarterly annual attrition stood at 37% as compared to 31% in the previous quarter and 18% in the same quarter last year. Of this, voluntary quitting (annual) was 33% as compared to 29% in the June quarter. The company reported in the earnings call that the mid-junior levels have the highest number of voluntary job layoffs, primarily in certain skills in India.
“I am pleased with our third quarter performance. While the industry is facing an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and delivered against our customer commitments and our strategic realignment. focused on doing,” Brian humphriesCognizant CEO said. “We continue to make significant investments to ensure that Cognizant is well positioned to serve our customers as they embrace the digital business model.”
Cognizant grew its net workforce sequentially by more than 17,000 over the period, despite the number of job layoffs rising. “In the fourth quarter, we expect to have 45,000 new graduates on-boarding in India and offer for 2022. Retention and recruitment are the focus of our leadership,” Humphries said in the earnings call.
Cognizant expects full-year revenue of $18.5 billion, representing an increase of 9.8% in constant currency, thus guiding toward the higher-end guidance it offered last quarter. This outlook assumes a favorable currency momentum impact of 130 basis points and includes a contribution of 330 basis points from inorganic revenue.
“During the third quarter, we drove strong bookings growth and maintained our revenue momentum in a strong demand environment. We are pleased with our ongoing investments in recruitment, which helped us accelerate demand by meaningfully increasing our headcount. able to bring,” Jan Sigmund, CFO, Cognizant said.
For the July-September period, financial services revenue increased 4.3% in constant currency, healthcare revenue increased 9.8%, and products and resources segment revenue increased 18.1%. Communications, Media and Technology was the best growing segment with a growth of 19.1%.
In October, the company declared a quarterly cash dividend of $0.24 per share to shareholders of record on November 19.
The company lowered road estimates in terms of revenue growth and marginally increased its revenue guidance for full-year 2021.
Cognizant’s revenue growth performance lags behind its rivals TCS And Infosys for a comparable period. TCS posted around 15% YoY revenue growth (CC terms) and Infosys’ revenue grew around 19% in the quarter.
Unprecedented demand-supply mismatch
An unprecedented demand-supply mismatch in the IT job market continues to impact IT Belvedere’s talent retention efforts as attrition The record high has been reached.
Quarterly annual attrition stood at 37% as compared to 31% in the previous quarter and 18% in the same quarter last year. Of this, voluntary quitting (annual) was 33% as compared to 29% in the June quarter. The company reported in the earnings call that the mid-junior levels have the highest number of voluntary job layoffs, primarily in certain skills in India.
“I am pleased with our third quarter performance. While the industry is facing an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and delivered against our customer commitments and our strategic realignment. focused on doing,” Brian humphriesCognizant CEO said. “We continue to make significant investments to ensure that Cognizant is well positioned to serve our customers as they embrace the digital business model.”
Cognizant grew its net workforce sequentially by more than 17,000 over the period, despite the number of job layoffs rising. “In the fourth quarter, we expect to have 45,000 new graduates on-boarding in India and offer for 2022. Retention and recruitment are the focus of our leadership,” Humphries said in the earnings call.
Cognizant expects full-year revenue of $18.5 billion, representing an increase of 9.8% in constant currency, thus guiding toward the higher-end guidance it offered last quarter. This outlook assumes a favorable currency momentum impact of 130 basis points and includes a contribution of 330 basis points from inorganic revenue.
“During the third quarter, we drove strong bookings growth and maintained our revenue momentum in a strong demand environment. We are pleased with our ongoing investments in recruitment, which helped us accelerate demand by meaningfully increasing our headcount. able to bring,” Jan Sigmund, CFO, Cognizant said.
For the July-September period, financial services revenue increased 4.3% in constant currency, healthcare revenue increased 9.8%, and products and resources segment revenue increased 18.1%. Communications, Media and Technology was the best growing segment with a growth of 19.1%.
In October, the company declared a quarterly cash dividend of $0.24 per share to shareholders of record on November 19.
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