Shares of nine IT companies were in demand after IT major Accenture Plc reported strong second-quarter results and raised business outlook for fiscal 2021.
The Nifty IT index gained 0.50% to currently trade at 25,501.45. The index rose 1.24% to hit the day's high at 25,373.35 in intraday today.
Coforge (up 2.59%), HCL Tech (up 2.08%), Info Edge India (up 1.47%), Infosys (up 0.73%), Mphasis (up 0.68%), Larsen & Toubro Infotech (up 0.56%), Wipro (up 0.39%), TCS (up 0.41%) and MindTree (up 0.38%) advanced.
Accenture reported financial results for the second quarter of fiscal 2021, ended on 28 February 2021, with revenues of $12.1 billion, an increase of 8% in U.S. dollars and 5% in local currency over the same period last year.
Consulting revenues for the quarter were $6.44 billion, an increase of 4% in U.S. dollars while outsourcing revenues were $5.65 billion, an increase of 14% in U.S. dollars compared with the second quarter of fiscal 2020.
Operating income was $1.65 billion, an 11% increase over the same period last year, and operating margin was 13.7%, an expansion of 30 basis points.
GAAP diluted earnings per share were $2.23, a 17% increase from $1.91 for the second quarter last year, including gains on an investment of $0.21 and $0.07, respectively. On an adjusted basis, EPS of $2.03 increased 10% from $1.84 for the second quarter last year.
For fiscal 2021, the company now expects revenue growth to be in the range of 6.5% to 8.5% in local currency, compared with 4% to 6% previously, including a reduction of approximately 1 percentage point from a decline in revenues from reimbursable travel costs.
Accenture expects operating margin for the full fiscal year to be in the range of 15% to 15.1%, compared with 14.8% to 15.0% previously, an expansion of 30 to 40 basis points from fiscal 2020.
The company now expects GAAP diluted EPS to be in the range of $8.67 to $8.85, compared with $8.17 to $8.40 previously.
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