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Cognizant Reaffirms 2015 Revenue Guidance

IT major Cognizant on Tuesday reaffirmed its revenue guidance of at least $12.41 billion for 2015 despite the impact of flooding and heavy rains on its operations in Chennai, which houses over 60,000 of its employees.
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Cognizant Reaffirms 2015 Revenue Guidance
New Delhi: IT major Cognizant on Tuesday reaffirmed its revenue guidance of at least $12.41 billion for 2015 despite the impact of flooding and heavy rains on its operations in Chennai, which houses over 60,000 of its employees.

"Due to the successful execution of its Business Continuity Plan, which largely mitigated the financial impact of the flooding, Cognizant has reaffirmed that it expects to achieve both its previously announced full-year revenue guidance of at least $12.41 billion and its non-GAAP diluted EPS guidance of at least $3.03," Cognizant said in a statement.

In December, Chennai experienced heavy rains that caused unprecedented flooding. Cognizant has 11 delivery and operations centres in the city and about 60,000 employees.

Many of Cognizant's competitors, including India's largest software services provider Tata Consultancy Services, Wipro and Hexaware, have warned of an impact on their revenues and margins on account of the Chennai rains.

The company has already committed $40 million (Rs 260 crore) to undertake relief and rehabilitation to the flood-hit Chennai.

"During this period, the company's key priorities were ensuring the safety of its employees and their families, and maintaining continuity of critical operations for clients. Cognizant is pleased to report that all its employees are safe and accounted for and that its comprehensive Business Continuity Plan enabled continuity of critical work for its clients," Cognizant said.

While announcing its financial results for the quarter ended September 2015, Cognizant had raised its annual revenue guidance to at least $12.41 billion (higher by at least 21 per cent) compared to 2014 and fourth quarter 2015 revenue to be at least $3.23 billion.

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