Cognizant withdraws 2020 steering as covid-19 pandemic blurs industry visibility

BENGALURU :
Nasdaq-listed Cognizant Technology Ideas Corp. on Thursday said it turned into once withdrawing the 2020 steering given on 5 February as it no longer has definite industry visibility as a result of of the affect of the covid-19 pandemic.

“Getting into the 2d quarter, Cognizant expects the pandemic to extra slash consumer demand as its societal and economic affect causes broader disruptions at some level of industries. The long-timeframe fundamentals of our industry remain valid,” the corporate said.

The Teaneck, Unique Jersey-primarily based mostly company, which employs more than 200,000 workers in India, expects its first quarter earnings to be in the vary of $4.22-$4.23 billion, up 3.4-3.6% in fixed foreign money phrases from the earlier-one year quarter, at the side of a adverse 50 foundation level affect from the exit of definite bellow material products and companies.

“The financial performance in the important thing two months of the quarter turned into once no longer off beam to exceed the earlier steering of two.8-3.8% pushed by valid performance at some level of our North The united states market,” it added.

Cognizant, which follows the calendar one year, will allege its first quarter earnings on 7 Would perchance well.

“All the diagram via the latter phase of March, covid-19 increasingly more affected Cognizant’s industry due largely to delays in mission fulfilment as supply, particularly in India and the Philippines, shifted to work-from-dwelling. This led to decreased consumer demand, primarily in the breeze back and forth, and hospitality industries.”

“I am jubilant with our industry momentum in the important thing two months of the quarter and grateful for the dedication and professionalism of our associates in March, each and each of which enabled us to fulfill our previously presented earnings steering,” said Brian Humphries, chief government officer, Cognizant.

“We acted decisively to limit covid-19’s affect on our industry, at the side of with out be conscious enabling work-from-dwelling capabilities at some level of our supply teams. We are succesful of proceed to yelp steps to supply protection to our associates and strengthen the evolving needs of purchasers in presently’s ambiance,” he added.

Cognizant said it has proactively taken steps to toughen its financial flexibility, at the side of “drawing down $1.74 billion on its revolving credit score facility on 23 March, bringing the corporate’s total cash and investment steadiness as of 31 March to roughly $4.7 billion or rep cash of $2.2 billion. The company has no basic debt maturities except 2023″.

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