Accenture’s blockbuster results point to appealing Q4 IT earnings

Accenture is an Irish multinational company selling consulting and processing services. Global information technology giant Accenture’s blockbuster February quarter. While income has put the ground for a strong show from Indian IT stocks on Friday as investors will factor in similar earnings for the March quarter.

Moreover, Accenture raised its guidance for the fiscal year ended August 2021 to 6.5-8.5% from 4-6 previous. Indian IT companies could also report robust growth for the March quarter next month.

Accenture’s revenues in US dollar terms jumped 8% on-year in the quarter. While it ended February at $12.09 billion helped by the strong show in the consultancy and outsourcing businesses. The IT company’s revenues were $140 million higher than the guidance of $11.55 billion to $11.95 billion.

On the other side, Accenture said its deal wins in the quarter climbed a staggering 13% on-year to $13 billion. Consulting and outsourcing new bookings were each a record $8.0 billion, the company said in an exchange slot. 

Besides, the company’s strong deal wins indicate well for Indian IT companies, who themselves have reported. Swashbuckling deal wins in recent quarters helped by increased demand for digital services among clients in the United States and Europe. Moreover, Information technology companies have benefited from the rapid shift to digital services and cloud computing by global companies.

However, bring out by the Covid-19 pandemic forced companies to go virtual almost overnight due to remote working. Accenture expects revenues for the third quarter of 2022-21 to be in the range of $12.55 billion to $12.95 billion. Indicate growth of 10-13% in local currency, the company said.

Indian IT companies will also take heart from the fact. That Accenture also raised its operating margin for the full-year to 15.00-15.1% from 14.8-15.00% pointed previous.