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Stocks of heavyweight information technology players such as Infosys and Tata Consultancy Services are seen having a bullish outlook next week in line with the CNX IT index, while those of companies such as HCL Technologies and Wipro are seen trading sideways. Today, shares of most IT companies ended up over last week's close on the positive movement of the CNX IT index. The coming week will see the CNX-IT index having a mildly bullish to bullish outlook.
US-based Cognizant Technology Solutions whose earnings set the growth trend for the Indian IT sector reported its earnings on Thursday. It reported a moderate 3% sequential growth in revenue and guided for a 17% on year rise in the same.
In the beginning of 2012, the company had reduced its revenue growth guidance to 20% from 23%. We believe that demand recovery for Indian IT, if at all, could be modest in FY2014E (2013-14); CTSH's guidance is the first reliable indicator of the same. We believe that that Street's 12-15% revenue growth expectation for FY2014E may be aggressive and faces downside risk.
Cognizant Technology's net profit for the quarter-ended December rose 16% on year to $278.8 mln. It reported a 3% sequential and a 17% on year rise in its revenue to $1.95 bln in Oct-Dec. During the quarter, the company had a stock-based compensation expense of $27.4 mln.
Stocks of heavyweight information technology players such as Infosys and Tata Consultancy Services are seen having a bullish outlook next week in line with the CNX IT index, while those of companies such as HCL Technologies and Wipro are seen trading sideways. Today, shares of most IT companies ended up over last week's close on the positive movement of the CNX IT index. The coming week will see the CNX-IT index having a mildly bullish to bullish outlook.
US-based Cognizant Technology Solutions whose earnings set the growth trend for the Indian IT sector reported its earnings on Thursday. It reported a moderate 3% sequential growth in revenue and guided for a 17% on year rise in the same.
In the beginning of 2012, the company had reduced its revenue growth guidance to 20% from 23%. We believe that demand recovery for Indian IT, if at all, could be modest in FY2014E (2013-14); CTSH's guidance is the first reliable indicator of the same. We believe that that Street's 12-15% revenue growth expectation for FY2014E may be aggressive and faces downside risk.
Cognizant Technology's net profit for the quarter-ended December rose 16% on year to $278.8 mln. It reported a 3% sequential and a 17% on year rise in its revenue to $1.95 bln in Oct-Dec. During the quarter, the company had a stock-based compensation expense of $27.4 mln.
