IT shares in demand on Accenture's strong performance

Shares of IT companies were in demand after IT major Accenture Plc reported strong first-quarter results and raised business outlook for fiscal 2021.

The Nifty IT index traded 1.68% higher at 23,276.65. The index hit an all-time high of 23,408 in intraday today.

Infosys (up 2.48%), HCL Technologies (up 2.19%), Wipro (up 1.84%), TCS (up 1.73%), Coforge (up 1.69%), Larsen & Toubro Infotech (up 1.67%), Mphasis (up 1.51%) and Mindtree (up 0.59%) and Tech Mahindra (up 0.48%) advanced.

Accenture reported financial results for the first quarter of fiscal 2021, ended 30 November 2020, with revenues of $11.8 billion, an increase of 4% in U.S. dollars and 2% in local currency over the same period last year. Revenue growth for the quarter was reduced approximately 2 percentage points by a decline in revenues from reimbursable travel costs.

GAAP diluted earnings per share were $2.32, an 11% increase from $2.09 for the first quarter last year, including gains on an investment of $0.15 and $0.08, respectively. On an adjusted basis, EPS of $2.17 increased 8% from $2.01 for the first quarter last year.

Operating income was $1.89 billion, a 7% increase over the same period last year, and operating margin was 16.1%, an expansion of 50 basis points.

The company expects revenues for the second quarter of fiscal 2021 to be in the range of $11.55 billion to $11.95 billion, 1% to 4% growth in local currency, reflecting the company's assumption of a positive 3% foreign-exchange impact compared with the second quarter of fiscal 2020. For fiscal 2021, the company expects revenue growth to be in the range of 4% to 6% in local currency, compared with 2% to 5% previously, including a reduction of approximately 1 percentage point from a decline in revenues from reimbursable travel costs.

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