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    Accenture’s growth outperformance, deal win momentum positive for Indian IT vendors: Brokerages

    Accenture’s growth outperformance, deal win momentum positive for Indian IT vendors: Brokerages

    Accenture’s growth outperformance, deal win momentum positive for Indian IT vendors: Brokerages
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    By CNBCTV18.com  IST (Published)

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    Accenture's robust performance and strong management commentary is seen as a positive for the Indian IT companies, brokerages said.

    Tech giant Accenture reported better than estimated earnings, registering an 8 percent revenue growth at $12 billion for the quarter ending February 2021 and a record $16 billion in new deal wins in the quarter, up 13 percent, YoY.
    The company has also raised its full-year guidance. It expects to grow between 6.5 percent and 8.5 percent in local currency — a jump from its earlier guidance of 4 percent to 6 percent. Accenture follows September to August as its fiscal year.
    Accenture's robust performance and strong management commentary is seen as a positive for the Indian IT companies, brokerages said.
    Credit Suisse believes the company's strong earnings reaffirms the view of an upcycle for the Indian IT sector.
    Infosys, HCL Technologies and TCS are Credit Suisse's preferred picks in the Indian IT sector.
    Morgan Stanley said that Accenture's Q2 revenue and bookings were above estimates leading to increased FY21 revenue growth guidance.
    The brokerage is of the view that Accenture's deal win momentum and positive management commentary are positive for Indian IT vendors.
    The growth outperformance by tech giant Accenture suggests strong demand led by outsourcing, JPMorgan said.
    The brokerage also said it was overweight on Infosys, HCL Technologies, Tata Consultancy Services, and Tech Mahindra as it believes that these companies should benefit from this.
    Jefferies also sees Accenture earnings as positive for Indian IT services companies and maintains a constructive stance with Infosys as its top pick.
    On March 18, Accenture announced a one-time bonus for all its employees on the back of very strong second-quarter results.
    In a statement, the chief executive officer, Julie Sweet, said that with the outstanding second-quarter financial results, Accenture has returned to overall pre-pandemic growth ahead of expectations.
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