COGNIZANT- FALL IN NET PROFIT
Cognizant has reported a decline in its net profits nearly by 17% as compared to the previous quarters of the financial year.
Cognizant, An American multinational information technology company that provides IT services , including digital , technology, consulting and operations.
Company is having its headquarters in Teaneck, New Jersey, United States.
The decline in its profits is due to situation arising out of lockdown in the country and overseas. As more than 50% of the business of this multinational company is from the US projects, which was effected due the pandemic going on in the United States of America.
The source of income for these multinational companies are mostly the overseas projects and due the pandemic there has been decrease in the flow of funds, thereby decreasing the profit ratio for the company.
Brian Humphries, CEO of Cognizant has quoted that the company will emerge strongly from this situation of crisis with more emerging trends that will a benefit for the country as well as the company. Nowadays, the people and organizations are shifting towards digital trends.
More than 50% of the profit of Cognizant is derived from financial and healthcare sectors, and thereby the company is less exposed to the most effected sectors during this crisis like travel, hospitality, automotive.
Revenue percentage of Cognizant in financial services was 34.3% of the total revenue and in terms of healthcare services it was 28.3 % during March, 2020.