Information technology (IT) services and consulting firm Accenture beat Street expectations to clock a revenue of $16.16 billion in the quarter ended May 2022 (Q3). The number, buoyed by cloud and digital transformation, was an increase of 22 per cent over the $13.26 billion reported for the same quarter a year earlier. The double-digit growth rate augurs well for the Indian IT services industry.
Accenture follows a September-August financial year. Third quarter represented period from March-May 2022.
Though the company upped its annual revenue guidance, it expects a negative foreign exchange impact on its results to the tune of a 4.5 per cent. Accenture also said that it was expecting full-year revenue to be in the range of 25.5 per cent to 26.5 per cent.
For the fourth quarter, the company has guided for a revenue of $15 to $15.5 billion, growth of 20 to 24 per cent, reflecting the company’s assumption of a negative eight per cent foreign-exchange impact compared to Q4FY21.
Consulting revenues for the quarter were $9.03 billion, an increase of 24 per cent compared to Q3FY21 and outsourcing revenues were $7.13 billion, an increase of 19 per cent for the corresponding quarter last fiscal.
Julie Sweet, Accenture’s Chair & CEO, said, “Our very strong financial results for the third quarter reflect continued broad-based demand across markets, services, and industries, and the continued recognition of the outstanding talent of our 710,000 people. We continue to gain significant market share, and our services have never been more relevant as our clients turn to us as the trusted partner for the solutions they need to accelerate growth and become more resilient and efficient.”
New bookings for Q3FY22 were $17 billion, an increase of 10 per cent year-on-year (YoY) while new consulting bookings were $9.1 billion, or 54 per cent of total new bookings, and new outsourcing bookings were $7.8 billion, or 46 per cent of total new bookings.
Attrition for the quarter was up 20 per cent, from 18 per cent in Q2FY22. The company said that attrition was primarily driven by India and that too at the lower end where it’s very competitive. “However, our executive retention is high. We expect Q4 to see high attrition but that is usual,” said the management.