What could be better for a company than beating its own estimates? Cognizant Technology Solutions has managed to do just that. The company reported 16 per cent increase in its revenue, which is higher than the last year. The total revenue this year was $3.279 billion for fiscal ending December, 2009 as against $2.816 billion last year. Its net income rose to $535 million, a 24 per cent rise.
The company’s own estimations were much lesser. It had given a guidance predicting the revenue to be $3.1 billion, up by only 10 per cent.
For the US-based IT Company, most of the revenue came from manufacturing and logistics which contributed 57.5 per cent followed by healthcare which gave 25 per cent to the revenue growth. The other segments showed 11.4 per cent and the financial services grew by 9.5 per cent.
As per Gordon Coburn, Chief Financial and Operating Officer at Cognizant, it was the
Retail, manufacturing and logistics segment which grew stronger than anticipated and lead the growth.
Cognizant has a huge outsourcing base in India and it plans to have $3.93 billion as revenue from there, a 20 per cent increase over current year.