CHENNAI: Technology giant Cognizant on Thursday reported a 3 per cent fall in its second-quarter (April-June) net profit to $456 million, or 78 cents per share, hurt by depreciation of Rupee against the US dollar and the initial funding of the Cognizant US foundation.
The company had posted a profit of $470 million, or 80 cents per share in the year-ago quarter.
However, the company’s total profit that excludes one-time losses rose to $1.19 from 93 cents in the year-ago quarter.
“Year-over-Year non-GAAP operating margin expansion reflects strong operational execution, and positions us well to absorb planned investments in the second half of the year,” said Karen McLoughlin, Chief Financial Officer, Cognizant.“As a result of this solid performance, we are pleased to raise our full-year non-GAAP EPS guidance,” she added.
The company raised its non-GAAP earnings expectations to at least $4.50 per share.Cognizant’s revenue, however, rose 9.2 per cent to $4.01 billion helped by higher spending by clients in the healthcare and financial sectors during the three-month period ended June 30, 2018.
“As our second-quarter results confirm, we’re making solid progress on our plan to accelerate our shift to digital services and solutions,” said Francisco D’Souza, Chief Executive Officer, Cognizant.
Revenue from its clients belonging to the financial services sector accounted for about 36.7 per cent of its total income, while the healthcare constituted about 28.9 per cent, the company said in a statement.
Cognizant said it was seeking opportunities in the Medicare and Medicaid servicing projects due to the higher adoption rates of insurance services from larger corporates.