Cognizant Technology Solutions reported net profit of $227.10 million for the September quarter, up

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11.8% per cent from $203.7 million for the same quarter of previous year. The quarter, which was third for Cognizant, saw revenue rise 31.6 per cent to $1.6 billion. The company has revised its annual revenue growth guidance upwards to at least 33 per cent.

While revenue for the financial year 2011 is expected to be at least $6.11 billion, Cognizant projects diluted earnings per share (EPS) to be $2.83 on a GAAP basis (generally accepted accounting principles) and $3.05 on a non-GAAP basis, which excludes $0.22 of estimated stock-based compensation expense.

The EPS guidance excludes the impact of any future non-operating foreign currency exchange gains or losses. The company has guided fourth quarter revenue to be at least $1.66 billion. Diluted EPS is expected to be $0.76 on GAAP basis and $0.82 on a non- GAAP basis, which excludes $0.06 of estimated stock-based compensation expense.

In the June quarter, Cognizant surpassed Wipro and inched closer to India’s No 2 IT services company, Infosys, in terms of revenue. The company was just $186 million behind Infosys. The latter kept up its lead last quarter and reported revenues of $1.76 billion. It has guided Q3 revenue (October–December) to be in the range of $1.80 billion to $1.84 billion. Annual revenue is expected to be between $7.80 billion and $7.20 billion.

“We have delivered another strong quarter with non-GAAP operating margins within our target range (19 per cent to 21 per cent). Growth during the quarter was again broad-based across portfolios of industries, services and geographies. In spite of persistent macro-economic uncertainties, clients throughout the world continued to invest thoughtfully and strategically in their businesses and are directing investments toward building agility to drive the dual mandates of operational efficiency and business transformation,” Francisco D’Souza, president and chief executive officer of Cognizant, said in a statement.

“Our continued investments across multiple service horizons will help address these dual mandates and drive superior business value regardless of the economic environment,” he said. Cognizant finished the quarter with $2.3 billion of cash and short-term investments. It spent $74 million for capital expenditure and $56 million on acquisitions. As previously announced, the company expects to spend about $285 million on capital expenditures in 2011, the majority of which will support facility expansion.