CS believes that Accenture’s strong earnings reaffirm the view of an upcycle for Indian information technology (IT) companies.
Brokerage firm CS has revised the 2021 fiscal guidance higher for Accenture, on the back of continued strong growth momentum. CS believes that Accenture’s strong earnings reaffirm the view of an upcycle for Indian information technology (IT) companies. In the Indian IT sector, the brokerage firm’s preferred picks are Infosys, HCL Tech and Tata Consultancy Services (TCS).
The IT consulting firm announced a one-time bonus for all its employees on March 18, after the company reported very strong second-quarter results. The company said its revenues were $12.1 billion in the quarter ended February 28, a rise of 8 percent in US dollars.
The one-time bonus is for all employees, below the level of the managing director, and will be equal to their one week’s base salary. The bonus is in recognition of the employees’ exceptional contribution during the COVID-19 pandemic last year.
Accenture, now, expects its full-year revenue 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.
Julie Sweet, the chief executive officer of the company, said in a statement that with the outstanding second-quarter results, Accenture has returned to overall pre-pandemic growth ahead of expectations.
(Edited by : Jomy)
First Published: IST