Cognizant Technology Solutions reported a 22.6 per cent increase in revenue during the April-June quarter as compared with the corresponding quarter previously.
According to a press release from the company, the revenue during the second quarter rose to $3.09 billion from $2.52 billion in the comparable period in 2014. The US-based IT firm reported net income of $420.1 million ($371.9 million).
While the GAAP operating margin for the quarter was 17 per cent, non-GAAP was 20.2 per cent slightly higher than the company’s target range of 19-20 per cent.
The release, quoting Karel McLoughlin, Chief Financial Officer, said, “Our strong performance has allowed us to raise our full-year revenue and EPS guidance for the second time this year.” For this fiscal, revenue is expected to be at least ₹12.33 billion, up 20.1 per cent over the previous year. The hike is despite the impact to full-year revenue following the acquisition of Health Net by Centene Corporation. During the third quarter, the company expects the revenue to be $3.14 billion.
Health sector saw a YoY growth of 39 per cent at $897.3 million and a sequential quarterly growth of 2.1 per cent. It is the second largest revenue generator after financial services, followed by manufacturing, retail and logistics at 12.4 per cent.
Revenue from North America grew 25.7 per cent this quarter whereas Europe rose by 7.7 per cent. The company has performed better than its competitors, TCS and Infosys, for the quarter ended June 30.
Strong revenue growth “Our second quarter sequential revenue increase in dollar terms was the strongest in our history,” said Francisco D'Souza, Chief Executive Officer, in the press statement referring to a six per cent growth.