Morgan Stanley has analyzed Accenture’s results and FY25 guidance, noting that while there are no significant changes to the IT environment, the outlook confirms expectations of organic growth improvement over the next 12 months. This development comes as a relief for the sector, particularly after the recent rally seen in the last 3-4 months.
Accenture’s results are seen as neutral to slightly positive for India’s IT sentiment. The key drivers include:
- Broad-based improvement in growth, as highlighted in the company’s commentary.
- A strong 20%+ year-on-year increase in order bookings.
- Positive organic growth in Q4, a shift from previous quarters.
- At the upper end of Accenture’s FY25 guidance, there’s an implied revenue growth delta of almost 400 basis points between FY24 and FY25.
These factors contribute to a cautiously optimistic outlook for the Indian IT sector moving forward.
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Accenture