Courtesy-Interbrand
Drawing strength from an excellent set of numbers reported by the global behemoth in the consulting and IT services, the shares of Indian information technology companies was seen to set off to a firm start during Friday’s trade.
Most stocks barring Wipro, gained around up to 2% while the Nifty IT index was trading over half a per cent higher during the early deals. Fresh 52 week highs were logged by the shares of Tech Mahindra, Mindtree, Coforge, Infosys and TCS.
With 16% year on year growth in revenue, better than expected third-quarter numbers were reported on Thursday by Accenture. The fiscal 2021 growth guidance was also increased by the company to 10 to 11% which is up from 8.5% and 6.5% it had guided in the last quarter.
Along with 20% year on year in dollar terms in Q3FY21, Accenture’s outsourcing business continued to get its strength reflected with 16% year on year growth and revenues in constant currency terms. As observed by Rashit Parikh of Namura, such strong traction bodes well for the Indian IT sector along with outsourcing being a relevant business from an Indian IT perspective.
Helped by accelerated digital shift and core transformation spends, the Kotak Institutional Equities expects the IT exports out of India to grow in healthy double-digit in FY2022 along with being close to double digits in this subsequent years. A tone for an upcoming earnings season for the Indian IT service companies has been set by a strong operational performance by Accenture during Q3FY21 in its outsourcing vertical.