You are here
Home > Uncategorized > Cognizant posts record-high attrition in April-June quarter at the same time as income progress picks up

Cognizant posts record-high attrition in April-June quarter at the same time as income progress picks up

CHENNAI: IT main Cognizant on Thursday posted 12% income progress year-on-year in fixed forex phrases and round 4.5% in sequential phrases for the April-June quarter.
At the same time as the corporate beat avenue estimates when it comes to income progress and elevated its outlook for the yr, a sizzling tech job market is impacting the IT bellwether adversely because it reported life-time excessive attrition ranges within the quarter.
Quarterly annualised attrition stood at 31% in comparison with 21% within the earlier quarter and 24% in the identical quarter final yr. Additional, voluntary attrition (annualised) stood at 29% in comparison with 18% in March and 11% in the identical interval final yr.
At a income of $4.6 billion and progress of 12% within the quarter, the corporate’s efficiency lags rivals resembling TCS and Infosys for the comparable interval. TCS posted nearly 19% YoY income progress (CC phrases) and Infosys revenues grew round 16% within the quarter.
Cognizant’s internet earnings was at $512 million up solely marginally from $505 million within the final quarter however a soar from $361 million it made in the identical interval final yr.
“We delivered a powerful second quarter,” Cognizant CEO Brian Humphries stated. “By way of focused investments, we have been shifting our portfolio to faster-growing market segments whereas extending our capabilities and partnerships to assist shoppers construct fashionable companies. I see a stronger, extra aggressive Cognizant rising, with rising industrial momentum. We’re bullish on the business and our prospects inside it.”
Commenting on the attrition within the convention name with analysts, Humphries stated: “We have seen primarily the attrition within the extra junior ranges of the group or mid-levels in India, nevertheless it’s additionally a worldwide phenomenon. It is actually one of many hottest markets we have seen or our crew has seen during the last 10-plus years.”
Cognizant’s income from monetary companies elevated roughly by 5%. Healthcare income elevated 13%, and merchandise and assets income grew 18%. Digital income grew roughly 20% year-over-year.
Buoyed by improved efficiency, Cognizant elevated its income steering for the complete yr 2021. The corporate expects 2021 income at $18.4-$18.5 billion; i.e., 9-10% progress in CC phrases, in comparison with 5.5%-7.5% progress it guided to within the final quarter. Nonetheless, this outlook elements in beneficial influence from forex actions of 120 foundation factors (100 foundation factors = 1%) and roughly 320 foundation factors contribution from inorganic income.
“Second quarter top-line outcomes exceeded our steering, pushed by improved demand for our companies and momentum in our digital income, and we elevated our full-year 2021 income progress to 10.2-11.2%,” Cognizant CFO Jan Siegmund stated. “To satisfy the robust shopper demand for our companies, now we have continued to scale our recruiting capabilities and put money into our folks.
Regardless of report attrition, within the April-June quarter, Cognizant crossed the 300,000 staff mark for the primary time in its historical past with the vast majority of the staff in India.
“We now anticipate to rent roughly 100,000 laterals in 2021 and to coach near 100,000 associates. As well as, we anticipate to onboard roughly 30,000 new graduates in 2021 and make 45,000 presents to new graduates in India for 2022 onboarding,” Humphries stated on the earnings name.
The corporate additionally stated it has at present vaccinated 160,000 of its associates and households and arrange practically 1,000 Covid-19 hospital beds for communities in India.

Supply hyperlink

Leave a Reply