American Depository Receipts of Indian IT stocks fell on Thursday after Accenture Plc lowered its revenue guidance for the fiscal ending Aug 2024. Infosys ADR fell the most by 3.83%, followed by Wipro which saw a decline of over 1%.
Accenture revised its revenue forecast downwards, along with a cautionary note regarding reduced IT spending by financial services clients.
The IT company sees its FY24 growth at 1-3%, compared with 2-5% previously estimated. It also sees its operating margin at 14.8% versus 14.8-15% estimated earlier, according to company statement. Accenture follows the September-August financial year.
Shares of Accenture Plc experienced a significant decline, marking their most substantial drop in four years. The stock plummeted by up to 10.03%, marking its most significant intraday decrease since March 2020.
Accenture recorded a flat second quarter, even as dealmaking rose to second-highest ever in the three months ended February 2024.
The second quarter was flat at $15.8 billion. Margin expanded by 70 basis points year-on-year at 13%. It also witnesses a New Gen AI bookings at $600 million in second quarter.
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