US-based IT major Cognizant Tuesday said its net profit dipped 3.6 per cent to $477 mn in the September quarter due to higher foreign exchange losses and revised its FY2018 revenue growth outlook to up to 8.9 per cent.
The company, which had registered a net profit of $495 mn in July-September 2017, attributed the decline in net income to “higher net non-operating foreign exchange losses in 2018 driven by the depreciation of the Indian rupee versus the prior year period.”
Cognizant’s revenues during the September 2018 rose 8.3 per cent to $4.08 bn, meeting its guidance range of $4.06-4.10 bn for the period. In the September 2017 quarter, its revenue was $3.77 bn. However, the company revised its FY2018 revenue forecast and said the topline is expected to be in the range of $16.09 bn to $16.13 bn, translating into a growth of 8.6-8.9 per cent over the previous year.
In August, the company had said it expects its revenues for 2018 to be in the range of $16.05-16.30 bn - which would have translated into a growth of 8.3-10 per cent. For the fourth quarter, Cognizant now expects its topline to be in the range of $4.09-4.13 bn. The company, which follows January-December as fiscal, has a majority of its workforce in India. “Cognizant delivered strong third-quarter results in three of our four business segments,” Cognizant CEO and Vice Chairman of the Board Francisco D’Souza said.