Cognizant posts 2.97% drop in its net profit in Q2

IT services firm Cognizant on Thursday posted 2.97% drop in its net profit for the second quarter ended June 2018, at $456 million, hurt by non-operating foreign exchange losses on account of rupee depreciation and the initial funding of Cognizant US Foundation.

Its revenue crossed $4 billion in the April-June 2018 quarter from $3.6 billion in the year-ago period, said Francisco D’Souza-led Cognizant which follows a January-December cycle as its fiscal year.

“GAAP net income was $456 million, or $0.78 per diluted share, compared to $470 million, or $0.80 per diluted share, in the second quarter of 2017. The decrease in GAAP net income was primarily due to net non-operating foreign exchange losses driven by the depreciation of the Indian rupee versus the prior year period, and the initial funding of the Cognizant US Foundation,” the statement said.

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For the third quarter, the company expects its revenue to be in the range of $4.06 billion to $4.10 billion. Its full-year revenue is forecast to be in the range of $16.05 billion to $16.30 billion.