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This Article is From Mar 21, 2025

Accenture Q2 Results A Cautious Read-Through For Indian IT: Dolat Capital — Prefers LTIMindtree, KPIT, eClerx

Accenture Q2 Results A Cautious Read-Through For Indian IT: Dolat Capital — Prefers LTIMindtree, KPIT, eClerx
Accenture posted a mix results, commentary suggest increased uncertainty.(Photo Source: pexels)
STOCKS IN THIS STORY
eClerx Services Ltd.
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KPIT Technologies Ltd.
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LTIMindtree Ltd.
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Accenture's commentary suggests rising macro uncertainty, particularly due to tariffs, though the company maintains a positive outlook for its FY25E guidance. While no sector specific concerns were highlighted, we expect a caution approach in the FY26 outlook from Indian IT Services in the April earnings season.

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Accenture reported 8.5% YoY growth in constant currency terms, in-line with the guided growth range of 5% to +9%; outsourcing/consulting was up 11%/6% YoY in CC.

The lower band of revenue guidance has increased by 100bps, setting the organic growth band at 2% to 4% (up from the previous at 1% to 4%), along with ~ 300 bps inorganic contribution. The operating profit margin is expected to be between 15.6% to 15.7% (upper end lowered from 15.8%).

View: Accenture's commentary suggests rising macro uncertainty, particularly due to tariffs, though the company maintains a positive outlook for its FY25E guidance. While no sector specific concerns were highlighted, we expect a caution approach in the FY26 outlook from Indian IT Services in the April earnings season.

Consequently, we maintain our relative preference for LTIMindtree/KPIT/eClerx.

Click on the attachment to read the full report:

Dolat Capital Accenture (Q2FY25 Result Update)_20-Mar-2025.pdf
VIEW DOCUMENT

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