US-based IT services company Cognizant, which has 70 per cent of its workforce in India, on Thursday posted an 11.48 per cent increase in net income at $563 million for the first quarter ended March 2022 on account of growth in digital revenue.
The company registered a net income of $505 million a year ago.
Cognizant also said it plans to hire over 50,000 freshers from campuses in India and expects to cross the revenue of $20 billion this year.
The firm's revenue increased by 9.65 per cent to $4.82 billion from $4.4 billion in the corresponding quarter of 2021.
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"For the first quarter, we reported revenue of $4.8 billion, up 10.9 per cent year-over-year in constant currency. Our strategic repositioning over the last few years has enabled us to engage more deeply with clients to help them succeed while supporting our growth trajectory. Our portfolio and capabilities are in strong demand as digital technologies move into the heart of organizations’ operating models and processes," Cognizant CEO Brian Humphries said.
Cognizant's digital revenue grew 20 per cent year-over-year. The company met its revenue guidance for the March 2022 quarter.
"Our first-quarter performance reflects strong revenue growth in our digital portfolio and a healthy demand environment. We remain focused on investing to support growth opportunities while also executing on pricing to offset the impact of compensation pressure driven by the continued labor supply-demand imbalance," Cognizant Chief Financial Officer Jan Siegmund said.
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The company moderated its guidance for annual revenue growth at 9 to 11 per cent.
"Our revised guidance is now $19.8 to $20.2 billion, representing 9 to 11 per cent growth in constant currency, positioning us to surpass $20 billion in annual revenues for the first time," Humphries said.
Cognizant had earlier given 2022 revenue guidance in the range of $20 to $20.5 billion.
Cognizant India Managing Director Rajesh Nambiar said the company's global headcount has increased to over 340,000 today from 289,500 in 2020.
"India is our digital talent hub and the heart of Cognizant. We have over 240,000 associates across the country," Nambiar said.
He further said an overwhelming majority of Cognizant's global delivery leadership team is in India.
"We have been building our base of a delivery pyramid from over 10,000 freshers in 2018 to 33,000 freshers in 2021 and we are on track to hire 50,000 freshers from premier campuses across India," Nambiar said.
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