During the quarter gone by, Accenture reported a 7% growth in its revenue from the same quarter last year.
For the full financial year, Accenture has narrowed its revenue growth guidance to between 6% and 7% from 5% and 7% earlier. The organic growth guidance of 3% to 4% year-on-year and are now near pre-Covid long-term averages.
Accenture will face headwinds of close to 2% from Federal contracts, reflecting in their 1% to 5% guidance for the ongoing quarter.
Gen AI new bookings stood at $1.5 billion for the quarter and revenue during the quarter stood at $700 million. The company’s financial services vertical was strong during the quarter, indicating a positive read through for Indian IT companies, as BFSI happens to be the largest vertical for most of these companies.
Brokerage firm HSBC wrote in its note that while overall deal wins were down 7% during the quarter, the decline in outsourcing bookings was much sharper.
Accenture’s results do not provide any incremental positive read through for Indian IT companies, HSBC said.
On the flip side, CLSA retained its positive stance on the Indian IT sector, even as Accenture’s shares fell 7% in regular trading on Friday.
The brokerage also cited the strength in Accenture’s BFSI segment, something similar that has been observed in the commentary of India’s IT companies as well.
It cited the lower end of the guidance range by Accenture as a result of a strong booking pipeline.
Infosys, Tech Mahindra and Persistent Systems are CLSA’s top picks within the Indian IT space. It has an “outperform” or “high-conviction outperform” rating on most of the Indian IT companies, barring LTIMindtree.
The Nifty IT index has gained 4% in the last one month, but still remains 10% lower on a year-to-date basis.
