May 15, 2021

Accenture’s robust efficiency offers hope for Indian IT: Analysts

Bengaluru: Accenture’s constructive outlook for fiscal 2021 and powerful first quarter efficiency present constructive indicators for the Indian IT companies firms, stated analysts. Know-how and consulting companies main Accenture reported revised its full-year development outlook upward to four per cent to six per cent for fiscal 12 months 2021 on the again of robust first quarter efficiency.

The corporate beforehand estimated a full-year development between 2 per cent and 5 per cent.

The corporate reported a four per cent development in income to $11.76 billion in the course of the first quarter ended on November 30, 2020 in US greenback phrases. Revenues have been greater than $200 million above the corporate’s guided vary of $11.15 billion to $11.55 billion.

Julie Candy, chief government officer, Accenture, stated the corporate noticed “broad-based enchancment throughout industries and geographic markets”, whereas new bookings, profitability and free money stream have been robust.

Whereas the corporate’s consulting revenues for the quarter stood at $6.33 billion, down by 1 per cent in US greenback phrases; the corporate reported 9 per cent development in outsourcing revenues to $5.43 billion.

‘They categorically stated they anticipate a powerful quarter of reserving within the second quarter additionally. That’s constructive. That they had 16 shoppers within the greater than 100 million vary. That’s constructive from an trade perspective,” stated Apurva Prasad, IT analyst at HDFC Securities.

The corporate additionally noticed revival in power & utilities, some components of retail and in journey and hospitality trade sectors, thereby offering hopes for the Indian IT companies firms and the entire trade, stated Prasad.

Accenture’s monetary companies income stood at $2.35 billion, a rise of seven per cent in US greenback phrases; whereas the well being and public service section noticed a 12 per cent soar to $2.21 billion.

“Whereas consulting noticed a decline, outsourcing enterprise noticed robust development. General constructive indicators for the Indian IT companies firms,” stated Madhu Babu, IT analyst, at brokerage agency Centrum.

Babu added that there was “fast-paced transformation spend” on the patron entrance within the retail, banking and monetary companies trade verticals.