Accenture Q4 Review — Read Through For Indian IT, Rough Road Ahead: ICICI Securities
Weak revenue guidance for Q1 FY23 and FY23, point towards slowing demand ahead for the Indian IT services industry.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Accenture plc started FY23 (ending August 2023) with lower than expected guidance for Q1 FY23 as well as for the full year factoring-in the impact of a challenging macro environment.
Accenture's consulting segment growth has been decelerating for last two quarters, plus management expects lower than the company average growth in Q1 FY23.
Additionally, slowing consulting bookings growth implies lesser demand for discretionary spends. We expect demand for discretionary services (e.g. customer experience) to be lower for Indian IT services companies as well.
Demand for engineering research and development services is also likely to be impacted. Weak revenue guidance for Q1 FY23 and FY23, below-consensus expectations, point towards slowing demand ahead for the Indian IT services industry.
Plus, slowing pace of hiring for the last two quarters (despite elevated attrition) implies weak demand visibility. We expect similar slowdown in hiring to continue for Indian IT services as well.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.