Accenture Q2 Results Review - Uncertainty Persists; Long-Term Demand Continues Strong: Axis Securities

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..Axis Securities Report.Accenture Plc.’s Q2 FY24 results stood below street expectations on all financial and operational fronts. Revenue for the quarter stood at $15.8 billion, flat in local currency YoY and a decline of 0.1% in USD terms. It registered GAAP earnings per share of $2.63 for the quarter while adjusted EPS stood at $2.77, reporting 10% YoY growth. The company’s new bookings stood at $21.6 billion, which was its second-highest ever. It reported a managed services book/bill of $11.6 billion while consulting business bookings stood at $10.52 billion. Overall, Q2 FY24 bookings are resilient, indicating robust demand despite prevailing uncertainties. Robust client relationships are reflected in the top 30 clients with quarterly bookings of ~ $100 million, and the company continues to witness strong demand for Gen AI – the great accelerator of reinvention – with over $600 million in new bookings..Impact on Indian IT services companies We believe strong investments in new edge technologies like digital technologies, cloud transformation, IoT, generative AI, and machine learning across verticals will support and accelerate the company’s revenue growth moving forward. However, near-term macroeconomic headwinds may impact the automation spend across verticals. On a vertical front, the banking, financial services and insurance vertical witnessed a stronger impact due to a fall in the rural banking sector from North America. On the other hand, the manufacturing, automobile, retail, pharmaceutical and healthcare industries are witnessing strong traction across geographies. IT services companies in India are receiving strong deal bookings despite near-term challenges. While we remain optimistic about the long-term prospects of IT services companies in India, near-term challenges may impact their earnings growth momentum..Click on the attachment to read the full report:.TCS Share Sale May Have Kicked Off Mega Monetisation Of Assets By Tata Sons — NDTV Profit Exclusive.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Accenture Q2 Results Review - Uncertainty Persists; Long-Term Demand Continues Strong: Axis Securities

IT services continue to face near-term challenges on account of rising inflation rates and potential slowdowns

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