Accenture March quarter performance benefits Infosys, TCS

Accenture (Reuters)
Infosys and TCS shares surged up by 2% on Monday.

Shares of Infosys and Tata Consultancy Services surged up by 2% in early trade on Monday. The gain was a clear result of strong earnings by Ireland-based IT software company Accenture, which raised hopes for good March quarter performance.

After the results, Infosys touched a 52-week high of Rs 1,234.65.

Accenture's second quarter revenue increased by 6% year-on-year to $7.9 billion in dollar terms and 12% in local currency (constant currency - CC), which was far better than its given guidance of 6-9% CC growth.

For the quarter ending May 2016 (Q3FY16), it expects revenue at $8.1-8.35 billion, implying CC growth of 6.7-10% on annual basis. Operating profit margin grew by 10 basis points to 13.7% year-on-year and profit (net income) was at $1.3 billion for the quarter.