Chennai floods won't impact our revenues: Cognizant

Reaffirms full-year revenue guidance of $12.41 bn

Nasdaq-listed IT services company Cognizant on Tuesday said that the flood in Chennai last November triggered by torrential rainfall won't have any material impact on its financial performance in December quarter as well as CY15.

The US-headquartered company, which majorly leverage's its offshore presence in India for service delivery said it is optimistic to meet its full year guidance as the financial impact of the flooding was largely mitigated by effective use of its business continuity plan.

"Due to the successful execution of its business continuity plan, which largely mitigated the financial impact of the flooding, Cognizant has reaffirmed that it expects to achieve both its previously announced full-year revenue guidance of at least $12.41 billion and its non-GAAP diluted EPS guidance of at least $3.03," said the company in a statement.

 

Cognizant has around 60,000 employees located in Chennai alone across 11 facilities.

In November, the company raised its full year revenue and EPS guidance for the third time this year. The company said Fiscal 2015 revenue expected to be at least $12.41 billion, up at least 21 per cent compared to 2014.

Cognizant had earlier announced a commitment of $40 million (around Rs 260 crore) to help residents, its employees and business partners in Chennai with relief and rehabilitation in the aftermath of recent flooding.