Cognizant reports record revenue in Q1

Cognizant Technology Solutions Corporation an e-business and application management solutions provider, has reported 33 per cent increase in revenue to $27.1 million in the first quarter ended March 31, 2000 from $20.4 million in the same period last year. The gross profit has risen to $13.13 million from $9.72 million. After providing for selling, general and administrative expenses, depreciation and taxation the net income is $3.5 million against $2.8 million an increase of 25 per cent.

Announcing the results here today, Mr. N. Lakshmi Narayanan, President and Chief Operating Officer, CTS (India) told presspersons that the period under reference marked the resumption of double-digit sequential revenue growth. While the share of Y2K business in revenue declined to 2 per cent in the first quarter this year from 7 per cent in the fourth quarter of 1999, non-Y2K revenue increased by 77 per cent during the quarter.

Mr. Lakshmi Narayanan said with the conclusion of new e-business deals the per centage of revenue from e-business had increased to 20 per cent from 10 per cent in the fourth quarter of 1999. Regarding the listing of shares in India, he said a decision might be taken in the next two months. The shares are now listed on Nasdaq.

Polaris Software

The Chennai-based Polaris Software Lab has reported a 165 per cent rise in revenue to Rs. 160.29 crores for the year ended March 31, 2000 exceeding the figure of Rs. 116.50 crores projected for the year at the time of its initial public offering. The revenue in 1998-99 was Rs. 60.54 crores.

The net profit has increased by 154 per cent to Rs. 27.21 crores from Rs. 14.64 crores. Depreciation claims Rs. 2.98 crores (Rs. 1.11 crores) and interest charges Rs. 30 lakhs (Rs. 39 lakhs). A higher provision of Rs. 4.68 crores (Rs. 1 lakh) has been made towards taxation.

Since the U.S. subsidiary was merged with the parent company in the current fiscal the figures are not strictly comparable. The U.S. subsidiary's revenue was Rs. 19.42 crores and the profit after tax Rs. 63 lakhs in the financial year 1999.

The directors have recommended a dividend of 30 per cent.

Sundaram Clayton

Sundaram Clayton has made further progress in the fourth quarter ended March 31, 2000 and achieved higher turnover and profits for the whole of 1999-2000. The higher growth in the medium and heavy commercial vehicle production and adoption of various cost management initiatives had helped the company to achieve a net profit of Rs. 22.72 crores during the 12 months ended March 31, 2000 against Rs. 15.83 crores in 1998-99, an increase of 44 per cent.

Net sales and income from operations have crossed the Rs. 200 crore mark and risen to Rs. 231.70 crores from Rs. 160 crores. Sales of brakes division went up by 41 per cent and spare parts by 17 per cent. The foundry division supplied 6,191 tonnes during 1999-2000 against 4,389 tonnes.

The directors have approved the payment of an interim dividend of 3.50 per share for at its meeting held on March 27 and the record date for this purpose has been fixed as May 3.

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Section  : Business
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