Accenture’s strong performance gives hope for Indian IT: Analysts

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SynopsisThe company reported a 4 per cent growth in revenue to $11.76 billion during the first quarter ended on November 30, 2020 in US dollar terms. Revenues were more than $200 million above the company’s guided range of $11.15 billion to $11.55 billion. The company previously estimated a full-year growth between 2 per cent and…

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Synopsis

The company reported a 4 per cent growth in revenue to $11.76 billion during the first quarter ended on November 30, 2020 in US dollar terms. Revenues were more than $200 million above the company’s guided range of $11.15 billion to $11.55 billion.

The company previously estimated a full-year growth between 2 per cent and 5 per cent.

Bengaluru: Accenture’s positive outlook for fiscal 2021 and strong first quarter performance provide positive signs for the Indian IT services companies, said analysts. Technology and consulting services major Accenture reported revised its full-year growth outlook upward to 4 per cent to 6 per cent for fiscal year 2021 on the back of strong first quarter performance.

The company previously estimated a full-year growth between 2 per cent and 5 per cent.

The company reported a 4 per cent growth in revenue to $11.76 billion during the first quarter ended on November 30, 2020 in US dollar terms. Revenues were more than $200 million above the company’s guided range of $11.15 billion to $11.55 billion.

Julie Sweet, chief executive officer, Accenture, said the company saw “broad-based improvement across industries and geographic markets”, while new bookings, profitability and free cash flow were strong.

While the company’s consulting revenues for the quarter stood at $6.33 billion, down by 1 per cent in US dollar terms; the company reported 9 per cent growth in outsourcing revenues to $5.43 billion.

‘They categorically said they expect a strong quarter of booking in the second quarter also. That is positive. They had 16 clients in the more than 100 million range. That is positive from an industry perspective,” said Apurva Prasad, IT analyst at HDFC Securities.

The company also saw revival in energy & utilities, some parts of retail and in travel and hospitality industry sectors, thereby providing hopes for the Indian IT services companies and the whole industry, said Prasad.

Accenture’s financial services revenue stood at $2.35 billion, an increase of 7 per cent in US dollar terms; while the health and public service segment saw a 12 per cent jump to $2.21 billion.

“While consulting saw a decline, outsourcing business saw strong growth. Overall positive signs for the Indian IT services companies,” said Madhu Babu, IT analyst, at brokerage firm Centrum.

Babu added that there has been “fast-paced transformation spend” on the consumer front in the retail, banking and financial services industry verticals.

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2 Comments on this Story

Sanujit Roy3 hours ago

Requirement is only quality with experience going forward and not quantity without knowledge or skills

jgaur jgaur12 hours ago

accenture is laying off people who have worked hard for 12 hours to deliver the projects successfully. while company is profitable it is highly unempathetic company with lack of plans for its employees development. dont be mislead by accenture brand.

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