IT major Cognizant has reported a 29 per cent drop in June quarter net income at $361 million (around Rs 2,701 crore), but is confident of logging strong growth in the coming quarters on the back of strong bookings and demand for digital services.
The US-based company, which posted a net income of $509 million in June 2019 quarter said it expects its revenue for 2020 to be in the range of $16.4-16.7 billion. For the June 2020 quarter, Cognizant’s revenue saw a 3.4 per cent decline (2.5 per cent in constant currency) at $4 billion from $4.14 billion in the year-ago period.
Cognizant — which has about 2 lakh employees based in India — follows January-December as financial year.
“We delivered a solid second quarter performance whilst continuing to improve our competitiveness.
Against an uncertain economic backdrop, we remain steadfast in investing in our clients and our associates, and in executing our digital strategy to position Cognizant for accelerated momentum,” Cognizant CEO Brian Humphries said.
The company said its revenue across business segments was negatively impacted by the Covid-19 pandemic and the ransomware attack, primarily in the month of April.
Humphries said the resurgence is “broad-based” across geographies and industries and the trend is expected to continue.
