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IT stocks in focus after Cognizant reports good earnings

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Capital Market
Last Updated : Aug 07 2013 | 11:55 PM IST

IT stocks will be in focus as Cognizant Technology Solutions Corp reported better-than-expected second quarter results and raised its forecast for the year as clients in North America invest more in IT services and software, encouraged by a steady economic recovery. Cognizant on Tuesday said it had earned a profit of $300 million for the June quarter, beating street expectations and surpassing its own guidance. The profit is up 5.7% sequentially and 19.2% compared to the year-ago quarter. The revenues stood at $2.16 billion, up 7% quarter on quarter and 20.4% compared to the same quarter a year ago. Teaneck, New Jersey-based Cognizant, which has most of its employees in India, said it expects 2013 earnings of at least $3.96 per share on revenue growth of at least 19% to $8.74 billion. It had previously forecast earnings of at least $3.95 per share on revenue growth of at least 17% to $8.60 billion.

Tata Motors, Lupin, Ranbaxy Laboratories and NMDC, among others, will declare their April-June 2013 quarter results today, 7 August 2013.

Shalimar Paints' net profit fell 41.85% to Rs 1.82 crore on 10.81% decline in total income from operations to Rs 109.20 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 6 August 2013.

Bosch's net profit rose 1.7% to Rs 251.68 crore on 5.2% increase in net sales to Rs 2269.19 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 6 August 2013.

Bombay Dyeing & Manufacturing Company reported net loss of Rs 27.57 crore in Q1 June 2013, higher than the net loss of Rs 27.50 crore in Q1 June 2012. Net sales rose 8.54% to Rs 516.37 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 6 August 2013.

CRISIL turns ex-dividend today, 7 August 2013, for interim dividend of Rs 3 per share for the year ending 31 December 2013.

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Sun TV Network turns ex-dividend, for interim dividend of Rs 2.25 per share for the year ending 31 March 2014.

KEC International turns ex-dividend today, 7 August 2013, for dividend of 50 paise per share for the year ended 31 March 2013 (FY 2013).

PTC India turns ex-dividend today, 7 August 2013, for dividend of Rs 1.60 per share for the year ended 31 March 2013 (FY 2013).

PTC India Financial Services turns ex-dividend today, 7 August 2013, for dividend of 40 paise per share for the year ended 31 March 2013 (FY 2013).

HDFC Bank has reportedly increased its base rate to 9.8% from 9.6% with effect from 3 August 2013, a move that would affect all corporate borrowers who have availed of floating rate loans. The hike, however,will not impact home loan customers as mortgages sold by HDFC Bank are on behalf of its parent which has not revised its benchmark prime lending rate yet, reports added.

Low-cost airline SpiceJet is reportedly in talks with private equity (PE) funds, an Oman-based sovereign wealth fund and foreign airlines as well as an Indian conglomerate for selling a minority stake to fund its expansion plans. According to the report, SpiceJet has started fresh rounds of talks, but is yet to finalize any deals.

State-run gas utility GAIL (India) reportedly plans to sell part of its 4.6% stake in Hong Kong-listed city gas distribution firm China Gas Holdings. According to reports, GAIL, which made a strategic investment of Rs 137 crore by acquiring 21 crore shares of China Gas in 2005, will sell part of the holding, minister of state for Petroleum and Natural Gas Panabaaka Lakshmi told the Rajya Sabha in a written reply to a question on Tuesday, 6 August 2013. The gas utility plans to keep a small strategic interest in the company that will help it retain its board position in China Gas, the minister reportedly said.

Foreign lenders have reportedly served winding up notice to Shiv-Vani Oil & Gas Exploration Services for defaulting on dues to the extent of $84.5 million (around Rs 480 crore). The matter will soon come up for hearing in the Delhi High Court and in London, media report added.

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First Published: Aug 07 2013 | 9:02 AM IST

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