It lowered full year revenue guidance to 14 per cent from 16.5 per cent earlier
Cognizant. (Photo: PTI/File)
Chennai: Despite a healthy 24 per cent jump in net profit, IT services major Cognizant struck a cautious note as it lowered full year revenue guidance to at least 14 per cent from 16.5 per cent earlier.
However, this is double the dollar revenue growth guidance of Infosys which pegged a 7-9 per cent growth in FY’15. For the quarter ended June 30, Cognizant reported net profit of $371.9 million.
Revenue for the second quarter of 2014 rose by 16.5 per cent to $2.52 billion. The results are on GAAP basis and it follows January-December fiscal. The company also expanded its stock repurchase programme by $500 million to $2 billion. “Due to weakness at certain clients and longer than anticipated sales cycles for certain large integrated deals, we are adopting a more conservative stance for rest of the year,” said Cognizant CEO Francisco D’Souza.
The firm said that Q3 revenue is expected to be between $2.55 and $2.58 billion, while fiscal 2014 revenue expected to be up at least 14 per cent compared to 2013. Earlier, it had projected revenue at $10.3 billion, up at least 16.5 per cent compared to 2013.
( Source : dc correspondent )
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