IT shares advance after Accenture reports strong Q3 performance

Shares of seven IT companies rose by 0.11% to 0.87% after IT major Accenture Plc reported strong third-quarter results and raised business outlook for fiscal 2021.

The Nifty IT index was up 0.20% to 29,105.25. The index rose as much as 0.80% at the day's high at 29,280.30 in the intraday today.

Mphasis (up 0.87%), Larsen & Toubro Infotech (up 0.78%), Infosys (up 0.63%), Tech Mahindra (up 0.42%), Oracle (up 0.34%), HCL Technologies (up 0.33%) and MindTree (up 0.11%) advanced.

Accenture reported financial results for the third quarter of fiscal 2021, ended 31 May 2021, with revenues of $13.3 billion, an increase of 21% in U.S. dollars and 16% in local currency over the same period last year. Net income for the quarter was $1.57 billion, a 25% increase from $1.25 billion for the third quarter last year.

Consulting revenues for the quarter were $7.26 billion, an increase of 21% in U.S. dollars and 16% in local currency compared with the third quarter of fiscal 2020.

Operating income for the quarter increased 24%, to $2.12 billion, or 16% of revenues, compared with $1.71 billion, or 15.6% of revenues, for the third quarter of fiscal 2020.

For fiscal 2021, the company now expects revenue growth to be in the range of 10% to 11% in local currency, compared with 6.5% to 8.5% previously. Fiscal 2021 revenues include a reduction of approximately 1% point from a decline in revenues from reimbursable travel costs.

The company now expects GAAP diluted EPS to be in the range of $9.07 to $9.16, compared with $8.67 to $8.85 previously.

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