gained 3 per cent at Rs 1,193 and TCS
rose 2 per cent to Rs 2,894. Coforge, Larsen & Toubro Infotech, HCL Technologies, Wipro
and Tech Mahindra from the Nifty IT index were up in the range of 1 per cent to 3 per cent.
Acceture’s revenue at $11.8 billion, up 2 per cent year on year (YoY) on constant currency terms, was well above its guidance and street’s estimate. EBIT (earnings before interest and tax) margin at 16.1 per cent (+50bp YoY) was driven by lower travel cost and increased utilization (300bp improvement QoQ to 93 per cent, the highest in a decade). The company reported new deal wins of $12.9b, up 25 per cent YoY, in a seasonally low quarter.
The management commentary indicates improving growth trajectory, with 2Q guidance (midpoint at +2.5 per cent YoY) above 1QFY21 revenue growth. It expects 2HFY21 to grow in the high single to low double-digits, aided partially by an improving macroeconomic environment.
Analysts at Motilal Oswal Securities see Accenture’s strong 1QFY21 performance as a positive for Indian IT Services. “We see Accenture’s 1QFY21 earnings and management commentary as a mere reiteration of the adaptability and resilience of its business model. We continue to form a positive strand on Indian IT, led by positive trends on higher technology spending’s across global companies,” the brokerage firm said in IT sector update.