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IT stocks rally after Accenture posts strong Q1 results

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Capital Market
Last Updated : Dec 17 2021 | 9:50 AM IST

Shares of 10 IT companies rose by 0.4% to 2.62% after IT services and consulting major Accenture on Thursday reported strong first-quarter results and raised business outlook for fiscal 2022.

The Nifty IT index was up 1.64% at 36,752.70. The index has risen 2.84% in two sessions.

Infosys (up 2.62%), Wipro (up 1.75%), Larsen & Toubro Infotech (up 1.69%), HCL Technologies (up 1.5%), Mindtree (up 1.26%), TCS (up 1.24%), Mphasis (up 0.96%), Coforge (up 0.94%), Tech Mahindra (up 0.44%) and L&T Technology Services (up 0.4%) advanced.

US-based Accenture reported financial results for the first quarter of fiscal 2022, ended 30 November 2021, with revenues of $15 billion, an increase of 27% in both U.S. dollars and local currency over the same period last year.

Diluted earnings per share were $2.78, a 20% increase from $2.32 for the first quarter last year, which included $0.15 in gains on an investment. On an adjusted basis, EPS increased 28% from $2.17 for the first quarter last year.

Operating income was $2.43 billion, a 29% increase over the same period last year, and operating margin was 16.3%, an expansion of 20 basis points.

Net income for the quarter was $1.82 billion, compared with $1.52 billion for the first quarter last year. Excluding after-tax investment gains of $97 million, net income for the first quarter of fiscal 2021 was $1.43 billion.

New bookings for the quarter were a record $16.8 billion, with record consulting bookings of $9.4 billion and outsourcing bookings of $7.4 billion.

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For fiscal 2022, Accenture expects revenue growth to be in the range of 19% to 22% in local currency, compared with 12% to 15% previously. It continues to expect operating margin for the full fiscal year to be in the range of 15.2% to 15.4%, an expansion of 10 to 30 basis points from fiscal 2021.

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First Published: Dec 17 2021 | 9:32 AM IST

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