Accenture Q2 Review: How Surprising Is The Surprise? ICICI Securities Analysis
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ICICI Securities Report
Accenture’s low growth guidance of the previous quarter, made a potential beat and raise more or less inevitable.
In that context, February 2021 earnings outcome (overall and for outsourcing) and guidance revision were unsurprising.
The upgraded revenue growth guidance (up 5.5% down 7.5% YoY, organic, constant currency, adjusted for reimbursements) is more or less in-line with the conventional guidance of the company, mid-fiscal, despite a weak base (FY20, ending August 2020).
Building in a buffer for further upgrades, FY21E growth should be largely similar to pre-Covid-19 levels adjusted for a bit of base shift.
While Accenture’s recent strength in outsourcing has often been perceived as the lead indicator for Indian IT by consensus, it needs to be seen whether it is coming at the expense of market share consolidation(?).
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