Cognizant reports 15% drop in Q1 profit; lowers 2019 revenue projection

Nasdaq-listed Cognizant Technology Solutions has reported a 15 per cent drop in net profit at $441 million for the first quarter ended March 31, 2019 as against $520 million in the corresponding quarter last year.

The first quarter operating numbers include the $117-million incremental accrual related to ‘India Defined Contribution Obligation’, as ruled by the Supreme Court of India in February.

Its peers — Tata Consultancy Services, Infosys and Wipro — have reported higher net income growth during the March quarter.

Revenue for Cognizant rose 5.1 per cent to $4.11 billion during the quarter under review compared to the revenue in the year-ago period.. It is, however, lower than 7.5 per cent-8.5 per cent growth in constant currency projected at the end of the December quarter.