CHENNAI: Cognizant Technology Solutions (CTS) has predicted its slowest revenue growth in 14 years for the quarter ended March 2016, as markets turn difficult with clients tightening IT spends. While CTS achieved annual guidance for 2015 with revenue of $12.4billion,up 21% from last year, it gave a measured revenue guidance for 2016.
For the quarter ended December 2015, CTS outpaced industry veterans posting a 17.9% y-o-y and 1.4% sequential growth in revenues. The company’s revenues rose from $3.19 billion reported for Q3 and $2.74 billion from last year to $3.23 billion this quarter. Net income or net profit of the company were $423 million, compared to $362 million for the same quarter last year, a 16.67% rise y-o-y.
For 2016, the company expects its annual revenue to be at least $13.65 billion-$14.2 billion with a relatively flat outlook for the next quarter, a forecast that comes in line with industry lobby Nasscom’s prediction of 10-12% revenue growth for 2017.
“We are pleased with our strong performance in 2015. At a time when major technology shifts are disrupting all industries, clients are looking to a partner like CTS to work with them to create the winning business models of tomorrow at the intersection of the physical and digital worlds” said Francisco D’Souza, CEO, CTS. With these numbers, CTS moves up another notch from its IT brethren who are still finding their way up post a difficult quarter.
While Infosys posted a 15.3% y-o-y growth in revenues bringing cheer to markets, HCL Tech posted a 9.3% growth on the back of higher margins and deal wins. Both Wipro and TCS which had sounded revenue warnings on account of the floods, posted 6.3% and 5.5% respectively.
While CTS witnessed a muted sequential growth similar to its peers, it excelled in operational performance posting a 16.7% y-o-y growth in net profits.
While Infosys and TCS registered 6.6% and 6.07% respectively, Wipro recorded a 2% growth while HCL remained in the red with a negative growth of 5.4%.
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