TCS, Infosys and Wipro take a lot of heart from Accenture's blockbuster earnings

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TCS, Infosys and Wipro take a lot of heart from Accenture's blockbuster earnings
  • IT consulting firm Accenture’s total revenue rose about 24% to $13.42 billion in the Q4, FY21, in line with analysts' expectation of $13.42 billion.
  • The company has forecasted revenue growth of 12% to 15% for FY22.
  • The strong results by IT major Accenture may bode well for the Indian IT firms ahead of its September quarter earnings.
The market has been raving about the tech super cycle for a while now and guess what, US-listed IT services firm Accenture has given a guidance to be better than the estimates.

Shares of the information technology companies Infosys and Wipro, the listed peers of Accenture in India, were the top gainers on the Nifty50 at market open.
StockGains on Sep 24 9:15 am
TCS1%
Infosys1.58%
HCL Tech1.18%
Wipro1.51%
Tech Mahindra0.86%

The company posted a revenue growth of 24% to $13.42 billion in the Q4, FY21, in line with analysts' expectation of $13.42 billion.

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Accenture’s FY21 annual revenue crossed the milestone of $50 billion driven by strong demand for digital services in the entire fiscal year ending March 2022.

The IT major has forecasted a revenue growth of 12% to 15% for FY22 expecting strong demand for its cloud and security services as companies delay return to offices due to the Delta variant.

Indian IT companiesGrowth forecast for FY22
Infosys13-15%
HCL TechDouble digit growth guidance
Tech MahindraDouble digit growth guidance

Global brokerage firm CLSA feels Accenture’s FY22 constant currency growth guidance is more than its estimates.
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The robust result by Accenture may excite IT companies like TCS, Infosys and HCL Technology that look up to the global peer.

“We believe Accenture’s strong Q4FY21 operational performance in the outsourcing vertical sets the tone for Indian IT service companies’ imminent earnings season,” said analysts at Edelweiss Research while it gives a ‘BUY’ rating to Indian IT stocks.

SEE ALSO: Vedanta, Dish TV, Sansera Engineering, IT and other top stocks to watch out for on September 24
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