Cognizant Technology - March 2013 Results Preview - Motilal Oswal

- For 1QCY13, CTSH guided for at least USD1,940m in revenue, which implies QoQ growth of 2.6%. We expect revenue at USD1,948m, a growth of 3% QoQ.

- For the full year, CTSH expects some revenue from the inorganic route, which we expect will contribute ~1pp to overall growth in 1QCY13.

- With ~79% of revenue from North America, company is expected to remain relatively unscathed from the depreciation of GBP during the quarter.

- We expect EBITDA margin of 20.5% during the quarter, +20bp QoQ. Our SGA estimate is 20.5%, similar to 20.6% in 4QCY12.

- We expect net income of USD289m, +3.5% QoQ, and net margin of 14.3%, flat QoQ.

- The stock trades at 18.9x CY13E and 16.6x CY14E earnings. Not Rated.

Source : Equity Bulls

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