Accenture Plc (ACN) has reported a 22.66 percent rise in profit for the quarter ended Nov. 30, 2016. The company has earned $1,004.48 million, or $1.58 a share in the quarter, compared with $818.90 million, or $1.28 a share for the same period last year.
Revenue during the quarter grew 6.37 percent to $9,005.60 million from $8,465.98 million in the previous year period. Gross margin for the quarter expanded 5 basis points over the previous year period to 30.31 percent. Total expenses were 85.21 percent of quarterly revenues, down from 85.57 percent for the same period last year. This has led to an improvement of 36 basis points in operating margin to 14.79 percent.
Operating income for the quarter was $1,331.96 million, compared with $1,221.26 million in the previous year period.
Pierre Nanterme, Accenture's chairman and chief executive officer, said, "We are pleased with our strong financial results for the first quarter. We delivered 7 percent revenue growth in local currency, which was broad-based across the dimensions of our business. We significantly expanded operating margin, delivered very strong earnings per share and free cash flow, and returned nearly $1.4 billion in cash to our shareholders."
For the second-quarter 2017, Accenture Plc projects revenue to be in the range of $8,150 million to $8,400 million.
For the financial year 2017, Accenture Plc projects revenue to grow in the range of 5 percent to 8 percent. For fiscal year 2017, the company projects operating income to grow in the range of 14.70 percent to 14.90 percent. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $5.64 to $5.87.
Operating cash flow improves significantly
Accenture Plc has generated cash of $1,083.88 million from operating activities during the quarter, up 68.50 percent or $440.63 million, when compared with the last year period.
The company has spent $689.62 million cash to meet investing activities during the quarter as against cash outgo of $706.49 million in the last year period.
The company has spent $1,162.78 million cash to carry out financing activities during the quarter as against cash outgo of $1,195.98 million in the last year period.
Cash and cash equivalents stood at $4,077.06 million as on Nov. 30, 2016, up 32.67 percent or $1,003.86 million from $3,073.19 million on Nov. 30, 2015.
Working capital increases marginally
Accenture Plc has recorded an increase in the working capital over the last year. It stood at $2,198.32 million as at Nov. 30, 2016, up 2.22 percent or $47.67 million from $2,150.65 million on Nov. 30, 2015. Current ratio was at 1.24 as on Nov. 30, 2016, down from 1.25 on Nov. 30, 2015.
Days sales outstanding went down to 62 days for the quarter compared with 63 days for the same period last year.
At the same time, days payable outstanding was almost stable at 17 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Accenture Plc has recorded a decline in total debt over the last one year. It stood at $27.34 million as on Nov. 30, 2016, down 1.16 percent or $0.32 million from $27.66 million on Nov. 30, 2015. Total debt was 0.13 percent of total assets as on Nov. 30, 2016, compared with 0.15 percent on Nov. 30, 2015. Interest coverage ratio improved to 436.99 for the quarter from 301.40 for the same period last year.
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