Indian ADRs Slide After Accenture Lowers Revenue Guidance
Accenture revised its revenue forecast downwards, along with a cautionary note regarding reduced IT spending by financial services clients.
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.
