One of the world’s leading IT giants, Cognizant has announced its fourth quarter and full-year 2023 financial results.
Highlights
- Rise in Net Profit- 7%
- Increase in Total Headcounts which stood at 347,700
- Attrition Rate stool at 13.8%
Ravi Kumar S, Chief Executive Officer, said, “I’m grateful to our nearly 350,000 employees for their tremendous year-long work enhancing our strength as industry experts, collaborative partners, and passionate innovators for our clients.”
“To keep advancing our ability to design and deliver solutions, we continue to invest in generative AI, cloud, data modernization, digital engineering, and IoT”, Ravi Kumar S said.
Ravi Kumar S further said, “I believe Cognizant is now in a significantly stronger position than a year ago to help our clients transform their businesses to prepare for the future as they navigate ongoing macro-economic pressures.”
The company’s total headcount at the end of the fourth quarter was 347,700, an increase of 1,100 from Q3 2023 and a decrease of 7,600 from Q4 2022. In the previous quarter, the total headcount stood at 346,600.
Cognizant voluntary attrition Tech Services for the year ended December 31, 2023, was 13.8% as compared to 25.6% for the year ended December 31, 2022.
Headcount of Peer Companies in Q3FY24
If you look at the Drop-in Headcounts in its peer companies Like TCS, Infosys, Wipro and HCLTech below is the data.
| Company | Q1FY24 | Q2FY24 | Q3FY24 |
| TCS | 6,15,318 | 6,08,985 | 6,03,305 |
| Infosys | 3,36,294 | 3,28,764 | 3,22,663 |
| Wipro | 2,49,758 | 2,44,707 | 2,40,234 |
| HCL Tech | 2,23,438 | 2,21,139 | 2,24,756 |
Attrition Rate
If you look at the last three consecutive quarters, attrition is continuously dropping in below companies, and are expected to see a sharp drop in attrition rates in the coming quarters.
| Company | Q1FY24 | Q2FY24 | Q3FY24 |
| TCS | 17.8% | 14.9% | 13.30% |
| Infosys | 17.3% | 14.6% | 12.90% |
| Wipro | 19.2% | 14.2.3% | 14.20% |
| HCLTech | 16.3% | 15.5% | 12.80% |
Jatin Dalal, Chief Financial Officer, said, “Fourth quarter’s sequential improvement in adjusted operating margin to 16.1% reflects our ongoing operational rigor and our NextGen cost optimization program, which have enabled us to exceed our margin commitment and continue to invest in our strategy to improve future revenue growth.”
“We were also pleased to deliver full-year free cash flow of $2 billion, which represented 95% of net income,” Jatin Dalal added.
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