CHENNAI: For the first time in its history, tech titan Cognizant Technology Solutions saw its profits contract both, on a quarterly and annual basis by 2.3% and 0.8%, respectively.
The poor performance was the result of a one-time impairment cost of nearly $140 million towards settling a customer exit. This comes at a time when its Indian peers have seen a bumper performance for the December quarter.
Net income or profit was down to $316 million in the December quarter from $395 million. Cognizant follows the calendar year fiscal. For the whole year, profit was down 24% at $1.3 billion over 2019.