Accenture Q1 Review - Results Beat; Status Quo Commentary; Neutral On Indian IT: Dolat Capital

Dolat Capital Report

Accenture plc. reported 8% growth YoY in constant currency terms, above guided band of 2% to +6% growth; outsourcing/consulting was up 11%/6% YoY in CC.

Accenture’s organic revenue growth guidance was upped by 100 bps at 1% to 4% (previus 0% to +3%), with ~ 300 basis points inorganic contribution, operating profit margin range stood at 15.6% to 15.8% (unchanged).

View: Accenture commentary has largely maintained a status quo on macros and demand environment. The guidance implies negative compound quarterly growth rate for rest of the year (same as earlier). Thus, we do not see any meaningful uptick in Q3 performance or commentary for Indian peers in upcoming earnings season.

Maintain our relative preference for LTIMindtree/HCLTech/Mphasis/eClerx.

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