Shares of information and technology companies fell on Friday, with the Nifty IT Index slipping nearly 2 percent, after global IT major Cognizant reported lower-than-expected earnings for the March quarter. The US-based company has also halved its revenue guidance for the year 2019.
Among the Nifty IT stocks, HCL Technologies fell the most by about 3 percent intraday to Rs 1,131.45 per share. Tata Consultancy Services and Tech Mahindra also slipped more than 2 percent followed by NIIT Technologies, Tata Elxsi and Infosys.
The company's revised its revenue forecast in the range of 3.6 percent to-5.1 percent in constant currency terms, compared with 7 percent to 9 percent earlier. The outsourcing company slashed its full-year guidance after witnessing sluggish demand in its financial and healthcare businesses.
Cognizant CEO Brian Humphries during its earnings call said, "Revenue performance reflects both external factors, including in-sourcing among a few large financial services clients and the spending pullback in healthcare clients that are in the midst of merger integration, as well as Cognizant-specific execution issues."
The revenue for the quarter saw a growth of 5.06 percent to $4.1 billion compared to $3.9 billion during the corresponding period last year. Revenue from financial services declined 1.7 percent while other sector saw growth.
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