Accenture Q3 Review - Mixed Results; Remain Neutral On Indian IT: Dolat Capital

Dolat Capital Report

Accenture Plc. reported 1.4% growth YoY in constant currency terms within the guided band of -1% to +3%; outsourcing/consulting was up +4%/-1% YoY.

The company narrowed revenue growth guidance to +1.5% to +2.5% (from 1% to 3%) for FY24 including 300 basis points inorganic contribution. Q4 FY24 implied CC growth of +2% -+6% YoY, operating profit margin remained 14.8%.

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Despite robust deal wins up 5% YoY, guidance was narrowed thereby implying continuation of slower ramp-ups going ahead.

We expect mid-single digit growth for Indian IT platers in FY25 under the best-case scenario and remain neutral on overall IT.

Remain selective and maintain preference for Infosys/HCLTech/Mphasis as preferred bet.

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