Cognizant's Q4 Net up 16 pc; meets 2012 revenue guidance
For the year 2012, Cognizant's net profit grew 19 per cent to USD 1.05 billion, while revenues were up 20 per cent to USD 7.34 billion in 2012.
It had forecast 20 per cent growth in revenues for 2012 to be at least USD 7.34 billion.
"The active customer base stood at 821, which included six strategic customers. The total strategic customers of the company now stands at 214," Cognizant CFO Karen McLoughlin said on a conference call.
Strategic accounts are those clients which have the potential to ramp up from at least USD 5 million to more than USD 50 million in annual revenue.
About the outlook, McLoughlin said, "We continue to see a trend towards our newer strategic customers embracing a wider range of Cognizant's services at an earlier stage in the relationship."
Generating broad-based industry leading growth of 20 per cent within a tough demand environment of 2012 is a testament to the strength of Cognizant's business model, she added.
The company added over 6,300 people (net) in the quarter, taking its headcount to approximately 156,700.
Of the gross additions in the quarter, 39 per cent were direct college hires, while 61 per cent were experienced professionals.
During the 2012 fiscal, Cognizant added about 19,000 (net) employees worldwide.
The attrition rate in the fourth quarter of 2012 stood at 10.7 per cent compared to 13 per cent in July-September quarter.
Around 39 per cent of gross additions for the quarter were direct college hires, while 61 per cent were lateral hires of experienced professionals.
"We ended the quarter with over 156,700 employees globally. During 2012, we added approximately 19,000 net new employees worldwide," the company said.
Cognizant's cash and short-term investments balances grew by USD 430 million during the year to USD 2.9 billion.
"We spent about USD 126 million for capital expenditures during the quarter. During 2013, we expect our capital expenditures to total approximately USD 400 million," she said.