Global IT bellwether Accenture has posted strong first-quarter results. Accenture’s Q1 revenues have gone up by 2 percent on year-on-year (YoY) basis and order wins in the quarter are higher by 25 percent.
The company has also raised its revenue guidance while expecting a return to pre-COVID growth in the second half of FY21.
Urmil Shah of IDBI Capital and Kawaljeet Saluja, Executive Director & head of research at Kotak Institutional Equities gave their take on Accenture numbers and discussed IT sector outlook.
Kawaljeet Saluja said, “Broadly there are three trends which are driving the growth of IT services companies globally-- massive investments, accelerated shift towards cloud and incremental investments in core modernisation. Accenture results captured some of the themes and we would expect Indian IT companies to benefit from the same trend.”
"The demand trends are reasonably robust and you would expect that trend to reflect in reasonably good third-quarter performance as well even after taking into consideration the fact that this quarter usually has furloughs,” he added.
Urmil Shah said, “The areas like user analytics for business growth, customer experience enhancement, these are the areas which I believe has not yet been captured. So according to us, there is good reason for both FY22 and FY23 being a double digit growth year.