Infosys poised to regain its No.2 rank as quarterly revenue edges past Cognizant

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Subscribe to enjoy similar stories. Bengaluru: Infosys Ltd’s latest quarterly revenue has helped it reclaim the position of India’s second-largest IT services firm, 14 years after Cognizant Technology Solutions Corp. raced ahead of Infosys.

On Thursday, Bengaluru-based Infosys said its dollar revenue jumped 3.8% from the April-June period to $4.894 billion in the September quarter. Cognizant, which follows a January-December fiscal year, has projected a revenue of $4.89-4.94 billion for the September quarter, up from $4.85 billion in April-June. Cognizant is scheduled to declare its September-quarter financials on 30 October.

New Jersey-headquartered Cognizant, which is listed on Nasdaq, counts three-fourths of its 336,300 employees in India, and for this reason, is called an Indian-heritage IT services firm. It raced past Infosys in April-June 2012 to become India’s second-largest IT company, behind Tata Consultancy Services Ltd. Fourteen years later, Infosys seems set to turn the tables.

Also read | Infosys may lead Indian IT pack this festive season This potential change in the pecking order underscores Infosys’s transformation by chairman Nandan Nilekani and chief executive Salil Parekh. It also underlines the growth pangs faced by Cognizant, which has witnessed three CEO changes in the last seven years. Infosys named Parekh to the top post on 2 January 2018.

In the October-December period of 2017, Infosys had revenue of $2.775 billion and an operating profit of 24.3%. Cognizant at the time made $3.828 billion in revenue and had a profitability of 17.2%. Put simply: Seven years ago, the quarterly revenue gap between Infosys and Cognizant was $1.05 billion.