Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

Cognizant Technology Solutions

Financial Analysis, Revenue Analysis ( Vertical, Geography, Services, Contract Type,

Onshore/Offshore Mix )2006-2011

Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

Cognizant Technology – Financial Performance – 2006-2011

Financial Performance:

Except in 2009 (16% YoY) due to recession caused by Global Financial Crisis Cognizant had seen significant YoY revenue growth 2010 (40%) and 2011 (33%). But compared to other Indian Top players Cognizant has done really well during and after the recession and crisis.

Significantly reduced the operating expenses during FY 2009 and later increased operating expenses in line with the revenue growth.

Cognizant has overtaken Wipro and became the Number 3 player and is closely following on the heels of number 2 player Infosys. Cognizant had seen tremendous growth in the past few years.

Financial Performance (US$Mn)

1,425

2,136

2,816

3,279

4,593

6,121

7881,206

1,5731,850

3,539

636

2583

1,136

2,655

1244930

1938

1429

382259

862517 619

431350734

535233

884

2006 2007 2008 2009 2010 2011

Revenue Operating Expenses Gross profit Operating Profit Net profit

Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

Cognizant Technology – Geography Mix – 2006-2011

Geography Analysis:

Dependency on the North America is very high compared to other Indian Players and it gets almost 80% of revenues from the region.

Europe has been constant at 18-19%.

Rest of the World ( APAC, Latin America, MEA) revenues are small but growing slowly.

Geography Revenues (%)8683

79 79 78 79

1316

19 19 19 18

1 1 2 2 3 4

2006 2007 2008 2009 2010 2011

North America Europe Other

Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

Cognizant Technology – Vertical Revenue Mix – 2006-2011

Vertical Analysis:

Cognizant is the dominant player in the BFSI segment and it gets significant amount of revenues from Insurance segment along with financial services segment.

Healthcare is the second largest revenue contributor and has significant dominance in this vertical and Healthcare spending in US is on the rise.

Manufacturing/Retail/logistics is growing over past three years.

Cognizant focuses on these few verticals for growth.

Vertical Revenues (%)48 47 46

4341

23 24 2426 26 27

15 15 16 17 19 20

14 15 14 14 14 13

42

2006 2007 2008 2009 2010 2011

Financial Services Health Care Manufacturing/Retail/Logistics Others

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