New Delhi :
IT company Cognizant has reported over 15% drop in net income for the quarter ended March, and slashed its full-year revenue growth outlook.
The US-headquartered company, which has a significant portion of its employees based in India, revised its full-year 2019 revenue growth outlook to 3.6-5.1% in constant currency, significantly less than 7-9v projected just months ago.
Cognizant follows January-December as financial year.
It cited “first quarter underperformance” and likelihood of slower growth in financial services and healthcare as reasons for the massive cut in full-year outlook.
The first quarter net income at USD 441 million was 15% lower than USD 520 million clocked in the year-ago period. The quarterly revenue rose to USD 4.11 billion, up 5.1% (6.8% in constant currency) from the year-ago period , the company’s own estimates.
“Cognizant’s growth and performance in the quarter leave room for improvement,” Brian Humphries, chief executive officer of Cognizant, said in a statement.
Humphries, who took over the baton from the Francisco D’Souza on April 1, admitted that the company, despite its client centricity and innovative spirit, was not yet delivering against the market opportunity.
“While I am encouraged by our client centricity, our employees’ winning spirit and our innovation, we are not yet delivering against the market opportunity. We are committed to strengthening our execution to invest in growth and drive shareholder value,” Humphries added.
Cognizant said its second quarter 2019 year-over-year revenue growth was estimated to be in the range of 3.9-4.9% in constant currency. In the coming quarters, the company intends to bring cost structure closer in line with the revised revenue expectations but will continue to invest in growth, talent, and innovation, McLoughlin said. Also, the strong balance sheet enables Cognizant to maintain financial flexibility while returning capital to shareholders.
HUL Q4 net profit rises 13.8 % to
Rs 1,538 crore
FMCG major Hindustan Unilever (HUL) on Thursday reported a 13.84% increase in its net profit to Rs 1,538 crore for the quarter ended March 31. The company had posted a net profit of Rs 1,351 crore in the January-March quarter of the previous fiscal.
Sales during the quarter under review stood at Rs 9,809 crore, up 8.95%, as against Rs 9,003 crore in the corresponding period a year ago, HUL said in a regulatory filing.
HUL’s total expenses for the said period were Rs 7,765 crore compared to Rs 7,181 crore, up 8.13%.
Century Textiles and Industries Q4 net profit Rs 227.62 crore
Century Textiles and Industries Ltd (CTIL) on Friday reported a standalone net profit of Rs 227.62 crore for the fourth quarter ended March 2019. It had posted a net profit of Rs 108.69 crore in the January-March quarter a year ago, Century Textiles said in a BSE filing.
The company’s total income during the quarter was Rs 1,008.54 crore. It was Rs 993.32 crore in the corresponding quarter of the previous fiscal. CTIL’s total expenses stood at Rs 765.38 crore.
Meanwhile, the company said its results were not comparable as it had granted right to manage and operate its Viscose Filament Yarn business, part of the textile segment, to Grasim Industries for 15 years from February 1, 2018, which has paid an upfront royalty of Rs 600 crore. The CTIL board has recommended a dividend of Rs 7.50 per share of Rs 10 each equivalent to 75% on paid-up equity share capital of the company for the year ended March 31, compared with 65% paid for the previous year for the year.
GCPL net profit rises 51.5% in March quarter
Homegrown FMCG major Godrej Consumer Products Ltd (GCPL) on Friday reported a 51.53% increase in consolidated net profit to Rs 935.24 crore in the fourth quarter ended March 31.
The company had posted a consolidated net profit of Rs 617.19 crore in the corresponding period last fiscal, GCPL said in a BSE filing.
However, its total revenue from operations during the quarter fell 3.06% to Rs 2,481.72 crore, compared with Rs 2,560.14 crore in the corresponding quarter of the previous fiscal.
The firm’s total expense stood at Rs 1,974.73 crore, against Rs 2,016.65 crore, a drop of 2.07%.
During the quarter, GCPL’s India sales were marginally down 0.9% to Rs 1,356.09 crore, compared with Rs 1,369.76 crore in the year-ago period.
