Shares of three IT companies rose by 0.46% to 0.72% at 11:15 IST on BSE after global IT major, Accenture reported strong Q2 results and raised revenue guidance for the financial year ending 31 August 2016 (FY 2016).
Accenture reported Q2 results on Thursday, 24 March 2016. The stock market remained closed on Thursday, 24 March 2016 and Friday, 25 March 2016 due to holidays.
Meanwhile, the S&P BSE Sensex was down 138.19 points or 0.55% at 25,199.37.
HCL Technologies (up 0.61%), TCS (up 0.46%), and Infosys (up 0.72%) gained. Wipro (down 0.49%) and Tech Mahindra (down 1.36%) declined.
The BSE IT index had underperformed the market over the past one month till 23 March 2016, gaining 6.75% compared with the Sensex's 8.23% rise. The index had, however, outperformed the market in past one quarter, rising 2.51% as against Sensex's 1.98% fall.
At the time of announcement of Q2 results, in its business outlook, Accenture raised its expectations of net revenue growth for the financial year ending 31 August 2016 (FY 2016) to be in the range of 8% to 10% in local currency compared with 6% to 9% expected previously. Accenture's consolidated net profit jumped 88.43% to $1.4 billion on 6% rise in net revenues to $7.9 billion in Q2 February 2016 over Q2 February 2015. For FY 2016, the company now expects diluted earning per share (EPS) to be in the range of $5.95 to $6.06 on a GAAP basis and $5.21 to $5.32 on an adjusted basis, excluding the after-tax impact of the gain on the sale of Navitaire. The company previously expected diluted EPS to be in the range of $5.09 to $5.24. Accenture now expects operating margin to be in the range of 14.6% to 14.7%, an expansion of 10 to 20 basis points from the adjusted operating margin of 14.5% in fiscal 2015. The company previously expected operating margin to be in the range of 14.6% to 14.8%.
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