Accenture The strong results of the second quarter of FY 2022 are also giving some big signs for Indian IT companies. Japanese brokerage firm Nomura has said in its recent report that Accenture’s results indicate strong consolidation in demand.
Let us inform that in the second quarter of FY 2022, the income of Ireland-based multinational IT company Accenture has seen a strong growth of 28 percent year-on-year in constant currency term and in the quarter ended February, the company’s income was $ 15 billion. While in the same period, the company’s earnings in dollars have seen an increase of 24 percent.
The company’s reported revenue for the second quarter has exceeded its guidance of $14.5-14.75 billion. It should also be noted that the company follows March-February financial year.
Julie Sweet, CEO of Accenture, said that the company’s results in the second quarter were excellent, reflecting the company’s strong performance across all markets, sectors and industries. The company’s net income in the second quarter stood at $1.66 billion, compared to $1.44 billion in the second quarter of last year.
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Accenture expects the company’s revenue in the third quarter to be between $ 15.70-16.15 billion. That is, in this, an increase of 22-26 percent can be seen in the constant currency term. The company also says that Russia’s invasion of Ukraine and subsequent sanctions on Russia have led to increased economic and economic instability around the world.
Nomura has also said in its recently released note that the protracted war between Russia and Ukraine could lead to a fall in the GDP growth of the Eurozone, which is not a good sign for Indian IT companies.
On the outlook for the IT sector, Abhishek Bhandari of Nomura says that he is positive about the demand outlook of Indian IT companies. Indian IT companies will see good demand coming from cloud adoption and transformational services going forward. Keeping this in mind, Nomura’s top picks in the large cap are Infosys, Wipro and Persistent Systems.
Nomura has given a target of Rs 850 for this while maintaining a buy rating in Wipro. Nomura says that an upside of 41 percent can be seen in this stock. Similarly, it has given a target of Rs 2,440 for an upside of 31 per cent while maintaining buy rating in Infosys. While giving Buy rating in Persistent Systems also, it has given a target of Rs 5,330 for the upside of 19 percent.
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