IT stocks dropped by after US-based tech major Cognizant Technology Solutions on Monday (May 07, 2012), lowered its revenue guidance for 2012
At 10.55 am, on the BSE, TCS down 4.40%, Infosys down 3.02%, HCL Technologies down 2.93%, Wipro down 2.72%, Mahindra Satyam down 2.10%, MphasiS down 1.72%, Tech Mahindra down 0.45% and Oracle Financial Services Software down 0.449%.
Cognizant Technology Solutions stunned the markets by lowering its 2012 revenue guidance by 300 basis points (bps) to 20% at $7.34 billion from an earlier 23%, citing drop in demand for its services, and pointing to a lack of improvement in discretionary spending.
'Due to a slower than anticipated acceleration in demand as we entered the second quarter, we are adopting a more conservative stance for the remainder of the year and revising our guidance to at least 20% revenue growth for 2012,' said Francisco D'Souza, Chief Executive Officer of Cognizant.
According to reports, uncertainty in the US and Europe, leading to slow ramp-ups or delays in signing of deals across the IT sector, is behind the slashing of growth guidance.
While meeting its first quarter revenue growth, with a 3% rise to $1.71 billion, Cognizant's revenues rose by 24.8% sequentially. Year-on-year, net profit was up 17% at $243.7 million, compared with $208.3 million in 2011.
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At 10.55 am, on the BSE, TCS down 4.40%, Infosys down 3.02%, HCL Technologies down 2.93%, Wipro down 2.72%, Mahindra Satyam down 2.10%, MphasiS down 1.72%, Tech Mahindra down 0.45% and Oracle Financial Services Software down 0.449%.
Cognizant Technology Solutions stunned the markets by lowering its 2012 revenue guidance by 300 basis points (bps) to 20% at $7.34 billion from an earlier 23%, citing drop in demand for its services, and pointing to a lack of improvement in discretionary spending.
'Due to a slower than anticipated acceleration in demand as we entered the second quarter, we are adopting a more conservative stance for the remainder of the year and revising our guidance to at least 20% revenue growth for 2012,' said Francisco D'Souza, Chief Executive Officer of Cognizant.
According to reports, uncertainty in the US and Europe, leading to slow ramp-ups or delays in signing of deals across the IT sector, is behind the slashing of growth guidance.
While meeting its first quarter revenue growth, with a 3% rise to $1.71 billion, Cognizant's revenues rose by 24.8% sequentially. Year-on-year, net profit was up 17% at $243.7 million, compared with $208.3 million in 2011.
....more info