accenture: Accenture Increases Fy22 Revenue Growth Guidance | India Business News – Times of India


BENGALURU: Accenture’s stellar performance continued into its second quarter ended February, and encouraged it to raise its revenue growth guidance for the year (ending August) to 24%-26%, from the previously announced 19%-22%.
Accenture recorded new bookings of $19.6 billion in the quarter, up 22% from the year-ago period, with consulting and outsourcing revenue of $10.9 billion and $8.7 billion respectively. Revenue grew 24% to $15 billion.
Accenture CEO Julie Sweet said, “We are experiencing double-digit growth in all parts of our business—across all markets, industries, and services. All our growth priorities—applied intelligence, cloud, industry X, intelligent operations, intelligent platform services, interactive, security and transformational change management—all are growing double-digits,” she said in the earnings call.
Sweet said many of its clients are taking on bold transformation programmes, “often spanning multiple parts of the enterprise and in accelerated time frames, which we call compressed transformation, as they recognise the need to transform every part of their enterprise with technology, data and AI and new ways of working.”
CFO KC McClure said, “We had a very strong Q2 and first half of the year. While we know the environment is uncertain given the ongoing conflict in Ukraine…we always call it as we see it…and based on the best information we have today, we are increasing key elements of our full-year guidance.”
The firm said the third-quarter and 2022 full-year business outlook does not include assumptions for a significant escalation or expansion of economic disruption or the Ukraine conflict’s current scope, which could have a material adverse effect on the company’s results of operations. The company has discontinued operations in Russia, where its revenue was $120 million for fiscal 2021.
Moshe Katri, MD of Wedbush Securities, said in a note that Accenture’s growth reflects continued strength for digital-based services and solutions as well as ongoing share gains. “Billable headcount’s year-on-year growth (31.1%), reaching the 660,949 level, was very strong, as the company will need to convert its significant, record bookings into revenues,” he said. Accenture added 24,000 people in Q2, taking its overall strength to almost 7 lakh people.
Abhishek Bhandari, analyst at brokerage firm Nomura said: “..we expect cloud adoption to be a multi-year cycle leading to industry growth rate to be 1.5 times of pre-pandemic levels. Accenture noted that it has begun to see some effects of price increases in 2Q FY22 and expects boosts in coming quarters. Newer contracts are coming in at better pricing, which may help to offset margin headwinds, particularly from higher-than-usual salary hikes at both onsite and offshore locations for India IT services companies, in our view,” he said.


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