Accenture’s Q2 FY24 Commentary Points To Continued Pressure On Demand: Motilal Oswal

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..Motilal Oswal Report.Accenture Plc., a key peer of Indian IT services companies, reported Q2 FY24 revenues of $15.8 billion, flat YoY CC and down 2.6% QoQ, in line with company guidance and Bloomberg consensus. But the company gave weak Q3 revenue growth guidance of (1%)-3% YoY constant currency and lowered corresponding FY24 guidance to 1.0%-3.0% (versus 2.0%-5.0% last quarter), both of which missed Bloomberg consensus expectations.Assuming Q3 growth near the top end, this implies a modest exit to FY24 of 6.0% YoY CC growth for Accenture despite a low base and inorganic support. Management commentary continues to indicate weakness in discretionary spending, partially compensated by cost efficiency related spending. Our discussions with Indian IT peers echoed the cautious spending environment in the near term, which should drag down FY24 operational performance for them. On the other hand, outsourcing-driven deal bookings remained robust, clocking the second highest bookings of $21.6 billion in Q2 despite the high year-ago base (down 2% YoY but up 17% QoQ). We see continued weakness in communication, media and technology as an ongoing overhang on Tech Mahindra Ltd. (~40% comm. exposure)..Click on the attachment to read the full report:.Paytm - Navigating Through The Storm: Motilal Oswal.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’s Q2 FY24 Commentary Points To Continued Pressure On Demand: Motilal Oswal

Deal wins strong, but guidance cut suggests elevated discretionary pain

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