IT investors find little comfort in Accenture results
2 years ago

IT investors find little comfort in Accenture results

Live Mint  

Recently, HCL Technologies Ltd had said that it expects FY23 revenue growth to be at the lower end of the guidance of 13.5-14.5% in constant currency terms. Amid looming worries on demand slowdown, investors in Indian information technology services companies’ stocks looking for meaningful clues from Accenture Plc’s Q1FY23 results are in for some disappointment. View Full Image Accenture's Q1FY23 constant currency revenue growth of 15% was ahead of its guidance The numbers behind India’s airport chaos Burmans may offload part of their stake in Dabur Why ‘special situation’ funds have nothing special for investors Accenture retaining its guidance for the full year implies weakening of growth in the second half of FY23. Accenture’s implied H2FY23 CC growth guidance of 5.6-9.6% y-o-y versus 25% y-o-y in H2FY22 suggests a sharp revenue growth moderation for Indian IT in FY24, reckon analysts from Jefferies India. Accenture’s strong outsourcing order booking in FY22 lends support," said analysts from JM Financial Institutional Securities Ltd. “However, lowest book-to-bill in outsourcing post pandemic indicates pace of booking might be slowing.

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History of this topic

Accenture unveils $4 billion share buyback, lifts 2025 revenue guidance by 3-6% on AI-led order boom
2 months, 3 weeks ago

Accenture unveils $4 billion share buyback, lifts 2025 revenue guidance by 3-6% on AI-led order boom

Live Mint  

Accenture unveiled a $4.0 billion share buyback and reported better-than-expected fourth-quarter revenue driven by a high demand from companies looking to adopt generative artificial intelligence technology. Accenture hiked its annual revenue growth forecast to 3-6 per cent for 2025 after improving macroeconomic indicators and the US Federal Reserve's latest supersized interest rate cut. The Dublin-based company reported fourth-quarter revenue of …

Accenture plans to push back bulk of its staff promotions by six months: Report
3 months ago

Accenture plans to push back bulk of its staff promotions by six months: Report

New Indian Express  

The Dublin -based technology giant, Accenture Plc is planning to push back the bulk of its staff promotions by six months. The company will announce most promotions in June, rather than in the usual month of December, Bloomberg reported citing an internal blog post. The blog said the firm is “permanently changing our primary promotion date from December to June, …

Accenture forecasts Q2 revenue below estimates on muted IT spending
1 year ago

Accenture forecasts Q2 revenue below estimates on muted IT spending

Live Mint  

IT services provider Accenture forecast second-quarter revenue below Wall Street targets on Tuesday, anticipating cautious spending by clients as macroeconomic uncertainty remains an overhang. Accenture's revenue from the communications, media & technology industry group fell 10% in the first quarter, while sales from North America, the company's biggest market, fell 1%, to $7.56 billion. Tata Consultancy Services, India’s No.1 IT …

Accenture results leave IT investors between hope and despair
1 year, 2 months ago

Accenture results leave IT investors between hope and despair

Live Mint  

Accenture’s revenue for the quarter ending August, deal bookings and FY24 revenue growth guidance point to a long recovery path for the Indian information technology sector. Secondly, this also means that large deal ramp ups could take longer, further weighing on the sector’s FY25 revenue growth trajectory—an incremental negative. Accenture’s FY24 revenue growth guidance of 2-5% was modest considering that …

IT stocks fall after Accenture cuts earnings growth guidance
1 year, 6 months ago

IT stocks fall after Accenture cuts earnings growth guidance

Live Mint  

Shares of all major Indian Information Technology services companies declined on Friday after US tech giant Accenture cut its revenue guidance for the fourth quarter, raising concerns over earnings of Indian software companies. Domestic brokerage firm Motilal Oswal expects a negative near-term impact of Accenture’s earnings commentary on Indian tech companies. “The overhang on the small deal extension and execution …

Accenture earnings: IT investors' fears coming true?
1 year, 6 months ago

Accenture earnings: IT investors' fears coming true?

Live Mint  

Global IT giant Accenture's earnings stirred further uncertainty among already apprehensive Indian IT investors. “Decline in consulting – first in past nine quarters - led by lesser small deals sales, indicate intensifying pressure on discretionary spend," noted analysts at JM Financial Institutional Securities Ltd. Accenture's performance is frequently viewed as a barometer for the Indian IT sector, and the anticipated …

IT sector Q4 review: Mixed numbers, cautious outlook; what’s the road ahead?
1 year, 6 months ago

IT sector Q4 review: Mixed numbers, cautious outlook; what’s the road ahead?

Live Mint  

On expected lines, the January-March quarter numbers of Indian IT companies came on the softer side with signs of stress due to the economic slowdown in the key markets including the US and Europe. Mixed numbers As Mint reported earlier, both Infosys and TCS, which together comprise 11 per cent of the Nifty 50 index weightage, missed analysts' estimates in …

Accenture’s layoffs signal tough times for India’s IT giants
1 year, 8 months ago

Accenture’s layoffs signal tough times for India’s IT giants

Live Mint  

IT consulting giant Accenture shocked the industry by announcing plans to trim its workforce by 19,000 over the next 18 months. Wipro reduced its headcount by a net 435 employees in Q3, FY23 after a low net addition of 605 employees in Q2. HCL Tech added a net 2,945 employees in Q3, taking its total headcount to about 220,000. Most …

Accenture is firing 19000 employees: 5 things the IT company said while announcing layoffs
1 year, 8 months ago

Accenture is firing 19000 employees: 5 things the IT company said while announcing layoffs

India Today  

Accenture, the Dublin-based tech company that specialises in offering software solutions to enterprise customers, is planning to lay off over 19,000 employees globally due to uncertain macroeconomic conditions. Although the layoff impacts 2.5 per cent of the company's global employees, the number is significantly large compared to layoffs at other tech companies, like Google, Twitter, and Microsoft. The filing shows …

Accenture to cut 2.5% of workforce; lay off 19,000 employees
1 year, 9 months ago

Accenture to cut 2.5% of workforce; lay off 19,000 employees

Hindustan Times  

Accenture Plc on Thursday lowered its annual revenue and profit forecasts and said it would cut about 2.5% of workforce, or 19,000 jobs, the latest sign that the worsening global economic outlook was sapping corporate spending on IT services. Accenture now expects annual revenue growth to be between 8% and 10% compared to the previous projection of 8% to 11% …

’Uncertain times ahead..’: Jefferies on Indian IT companies
1 year, 11 months ago

’Uncertain times ahead..’: Jefferies on Indian IT companies

Live Mint  

A sharp slowdown in net hiring, muted growth outlook in 4Q and a potentially slower conversion of bookings to revenues points to a sharp growth moderation for Indian IT firms, highlighted Jefferies in a note on Indian IT firms who sees ‘uncertain times ahead’ for the sector. “After the Q3 results so far, the brokerage house expects aggregate revenue for …

Amid slowdown & rising caution, will IT firms deliver another weak quarter?
1 year, 11 months ago

Amid slowdown & rising caution, will IT firms deliver another weak quarter?

Live Mint  

Indian IT stocks underperformed in 2022 amid warnings of a potential slowdown in business on global recession fears and earnings downgrades. The IT Services sector is expected to report moderate growth in Q3FY23, primarily on account of the seasonally weak quarter and slowing growth momentum led by uncertainties in the US and UK. The brokerage expects large caps to outperform …

Top largecap, midcap, smallcap Indian IT stock picks as suggested by brokerages
2 years, 5 months ago

Top largecap, midcap, smallcap Indian IT stock picks as suggested by brokerages

Live Mint  

Indian IT stocks have recently been under pressure amid the current market selloff. Domestic brokerage and research firm Edelweiss in its latest report on IT said that it prefers HCL Tech, Infosys and Tata Consultancy Services among the large-caps and Coforge, LTI and Mindtree among midcap IT stocks. Analysts at brokerage JM Financial said that Accenture’s results confirm the ‘All’s …

Is all well for Indian IT firms? What Accenture’s results indicate
2 years, 5 months ago

Is all well for Indian IT firms? What Accenture’s results indicate

Live Mint  

US-based IT giant Accenture's earnings are often seen as an indicator of the performance of the Indian IT sector. Accenture’s strong performance and solid commentary supports brokerage Edelweiss' thesis of a robust tech upcycle. Analysts at brokerage JM Financial said that Accenture’s results confirm the ‘All’s well for now’ thesis for Indian techs despite increasing concerns of hit on IT …

53% Indian Firms Plan Hirings, 60% Set to Increase Salaries as IT Sector Leads Rebound
3 years, 10 months ago

53% Indian Firms Plan Hirings, 60% Set to Increase Salaries as IT Sector Leads Rebound

News 18  

With TCS piping Accenture to become the most valuable IT company in the world, India’s IT sector has successfully negated the naysayers. Now, according to according to professional recruitment services firm Michael Page India’s ‘Talent Trends 2021 Report’, 53 per cent of companies say they are planning to increase their headcounts in 2021. According to the report, India projects an …

Stocks of IT companies are on cloud nine after Accenture’s strong results
4 years ago

Stocks of IT companies are on cloud nine after Accenture’s strong results

Live Mint  

Shares of software services firms Tata Consultancy Services Ltd and Infosys Ltd hit a new 52-week high on Friday after Accenture Plc announced better-than-expected results for its first quarter. Analysts say that large Indian IT firms tend to mirror Accenture’s performance with some lag, and with other channel checks suggesting strong IT demand, the outlook for India-based companies remains strong. …

Accenture Gives Bonuses, Plans Promotion in December Cycle
4 years ago

Accenture Gives Bonuses, Plans Promotion in December Cycle

News 18  

Many companies laid off their employees and implemented pay cuts after the central government imposed COVID-19 lockdown following the outbreak of coronavirus in India. According to a report in The Times of India, Accenture has not only given bonuses to a majority of its two lakh employees in India but is also planning promotions in the December cycle. In August, …

Safe havens TCS, Infosys leave Accenture far behind on valuations
4 years, 2 months ago

Safe havens TCS, Infosys leave Accenture far behind on valuations

Live Mint  

The Nifty IT index has risen 37% this year, outperforming the Nifty 500 index by about 42%. The firm’s revenues are double the size of India’s largest IT services firm, Tata Consultancy Services Ltd. And its share of revenues from digital, cloud and security services are now as high as 70% of revenues, far higher compared to its Indian peers. …

Accenture's Q4 orders, outsourcing biz growth fuel optimism for Indian IT
4 years, 2 months ago

Accenture's Q4 orders, outsourcing biz growth fuel optimism for Indian IT

Business Standard  

Accenture's Q4 orders, outsourcing biz growth fuel optimism for Indian IT The better-than-expected performance in the outsourcing business has indicated the recovery of revenue growth for Indian IT firms too, and may happen sooner than expected Premium According to Motilal Oswal Securities, Accenture’s management has hinted at a robust deal pipeline, which is quite encouraging for Indian IT companies. Sai …

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