US-based peer Accenture’s uptick in FY22 outlook gives hopes to IT firms in India; Infosys, Wipro, TCS gain

• IT consulting firm Accenture’s revenue for Q1 FY22 jumped 27% to $14.97 billion compared to $11.76 billion in the last fiscal year.
• Revenues were more than $600 million above the company’s guided range of $13.90 billion to $14.35 billion.
• Following this, Accenture has raised its revenue growth outlook for FY22 between 19% and 22% from 12% to 15% forecast earlier as it continues to seek demand for cloud transformation.

While the market momentum is weak on Friday, information technology (IT) company stocks are the outliers as they hope for a better demand environment and growth prospects after its US-based peer Accenture reported a strong earnings in Q1 (September-November quarter) and also raised its business outlook for financial year (FY) 2022.

IT consulting firm Accenture’s revenue for Q1 FY22 jumped 27% to $14.97 billion compared to $11.76 billion in the last fiscal year.

Besides, the company also declared a quarterly cash dividend of $0.97 per share, up 10% from a year ago.

The company attributes the great performance to its efforts to turn businesses to digital, cloud and also hiring and upskilling employees at the same time. The company added 50,000 people in the September-November quarter taking the overall headcount to 6.84 lakh.

Julie Sweet, chairperson and chief executive at Accenture said that, “Our outstanding first-quarter financial performance and ability to capitalise on the market opportunity reflects continued market share gains. This is the direct result of having executed for years a strategy to rotate our business to digital, cloud and security, both hiring and upskilling exceptionally talented people across the globe and fostering deep relationships with both the world’s leading companies and our technology partners.”

While US-based Accenture sees a revenue growth of 19%-22%, Indian IT major Infosys forecast a revenue growth of 16.5% to 17.5% in FY22.

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