Information Technology: Accenture Q4FY24: In-Line Performance; Guides 3-6% Growth In FY25

In-line performance: Accenture (ACN) reported revenue of USD16.4bn, up 2.6% YoY (5% LC) in Q4. Revenue growth was above the mid-point of the company’s guidance of 2-6% in LC. For FY24, revenue grew 1.2% YoY to USD64.9bn (2% LC) and was at the mid-point of the guided range of 1.5-2.5% growth in LC. Seven of the 13 industries, including public service, industrial, software and platforms, health, high-tech, energy, and life sciences, grew in a mid-single digit or higher in Q4. Consulting revenue grew 0.7% YoY to USD8.3bn (3% LC), whereas revenue from Managed Services/Outsourcing grew 4.6% YoY to USD8.2bn (7% LC). Organic revenue improved, showing a slightly positive growth in Q4. ACN posted fairly strong double-digit growth in Security, double-digit growth in Industry X, and high single-digit growth in Cloud and Song, during Q4. Strategy and Consulting, and Technology reported mid-single-digit growth, while Operations grew in a low single-digit in Q4. New bookings stood at USD20.1bn (21.1% YoY; book-to-bill: 1.2x). Consulting bookings stood at USD8.6bn (up 1.2% YoY; book-to-bill: 1x), and Managed Services bookings stood at USD11.6bn (up 41.5% YoY; book-to-bill: 1.4x). The company reported USD1bn worth of new bookings in Gen AI in Q4 (total USD3bn in FY24 vs. USD300mn YoY) and achieved USD900mn in revenue in FY24 (vs USD100mn in FY23). Adj OPM increased by 10bps YoY to 15% in Q4. Quarterly annualized voluntary attrition stood at 14% in Q4, similar to the QoQ/YoY attrition. Total headcount increased by 24,103 QoQ to 774,303 (3.2% QoQ/5.7% YoY).

Weakness in Financial Services persists: Q4 revenue growth was led by Health and Public Services (11% in LC YoY), Products (6%), CMT (5%), and Resources (3%), whereas Financial Services declined 2% YoY LC. Geography-wise, North America grew 6% YoY in LC, driven by growth in Public Services and Industrial; EMEA grew 2% on the back of growth in Public Services and Life sciences, partially offset by decline in Banking and Capital Markets; and Growth markets grew 9% led by growth in Banking and Capital Market, Software and platforms, and Industrials.   

Guides to 3-6% LC revenue growth in FY25: ACN has guided to LC revenue growth of 3-6% in FY25 (includes inorganic contribution of slightly more than 3%). The guidance assumes positive 1.5% forex impact on reported USD revenue. It expects GAAP operating margin to expand by 80-110bps to 15.6-15.8%. Adjusted operating margin, which excludes USD438mn of business optimization costs in FY24, is expected to expand by 10-30bps to 15.6-15.8%. It expects Q1FY25 revenue at USD16.85-17.45bn (2-6% LC range), assuming a positive 1.5% forex impact. The company expects OCF and FCF at USD9.4-10.1bn and USD8.8-9.5bn, respectively, in FY25.

Earnings Call KTAs: i) Management highlighted that the demand environment has not seen much change, and remains cautious. ACN is well positioned to capitalize on growth opportunities when market conditions improve. ii) Consulting and Managed Services are expected to grow in a low-to-mid single-digit in FY25. iii) Management highlighted that organic revenue saw an improvement in Q4 with slightly positive growth, and the trend is expected to continue in FY25. Management indicated that the top end of the guidance assumes more of the same discretionary spending environment, while the lower-end assumes further deterioration in discretionary spending over what is observed in FY24. iv) With USD1bn in new Gen AI bookings in Q4, the company has closed USD3bn bookings in FY24 and achieved USD900mn in revenue in FY24. Bookings and revenue from Gen AI are expected to register healthy growth, as clients execute large implementations. v) It has invested USD6.6bn on 46 acquisitions in FY24. It is investing into capital projects (USD440bn TAM, growing at 5%), Health (USD70bn TAM, growing at 6%), and Europe public services (USD46bn TAM, growing at 5% annually) through M&As for the next wave of growth. It plans to invest USD3bn on M&As in FY25. vi) ACN has ~57,000 skilled data and AI practitioners as against its goal of doubling its data and AI workforce, from 40,000 to 80,000 by the end of FY26. vii) It has 33/125 clients with quarterly bookings greater than USD100mn in Q4FY24/FY24, respectively.

Fortis Bannerghatta Road Performs Complex Bilateral Hip Replacement Surgery On 38-Year-Old Visually Impaired Man

-         The patient suffered from multiple co-morbidities - Diabetes, Visual Impairment, Renal Failure and was awaiting a potential kidney transplant-

Fortis Hospital, Bannerghatta Road successfully treated a 38-Year-Old visually impaired man who had sustained severe injuries, including multiple complex fractures in both hips and his shoulder, following a fall from chair while at his shop. The team of doctors’ led by Dr Mohan K. Puttaswamy, Senior Consultant Orthopaedics, Fortis Bannerghatta Road, Bengaluru performed an intricate bilateral hip replacement surgery, and the patient was discharged in stable condition after a 12-day hospital stay.

The patient, Rakesh (name changed), was visually impaired and facing challenges in performing daily tasks, suffered additional complications following the accident. The fall resulted in bilateral hip fractures and a shoulder fracture, leaving him completely immobile. Initially admitted to a local hospital after the accident, he was transferred overnight to Fortis Hospital, Bannerghatta Road for advanced treatment.

Thorough medical evaluation indicated that he had sustained severe injuries to his both hip joints and a fracture in his left shoulder. Given the patient’s multiple co-morbidities, including diabetes, renal failure, and visual impairment, a multidisciplinary team of doctors—including anaesthetists, intensivists, nephrologists, and orthopaedic surgeon—decided to proceed with a staged bilateral hip replacement surgery. The goal was to restore mobility, alleviate pain, and ensure a quicker recovery through meticulous management of his injuries.

Giving details of the surgery, Dr Mohan K Puttaswamy, Senior Consultant-Orthopaedics, Fortis Hospital, Bannerghatta Road, Bengaluru said, “This case was highly complex owing to the multiple co-morbidities suffered by the patient. These factors significantly increased the surgical risks. The patient presented with fractures in both hips and the left shoulder, necessitating a carefully planned approach. To address the bilateral hip fractures, we opted for a staged bilateral hip replacement due to the complexity and inherent risks of performing both replacements simultaneously.”

“We first replaced one hip, allowing the patient to stabilize and regain some mobility. A week later, we performed the second hip replacement. This phased approach was critical to minimizing surgical stress and ensuring the patient’s stability throughout the process. After successfully addressing the hip fractures, we then treated the shoulder fracture. Given the patient’s renal failure, we employed a conservative blood management strategy during the surgeries to reduce transfusion needs and minimize strain on the kidneys, which was essential considering his potential need for a kidney transplant in the future.” Dr Puttaswamy added

Mr. Akshay Oleti, Business Head, Fortis Hospitals, Bengaluru said, “At Fortis Hospitals, we are committed to delivering personalized, high-quality medical care. We are proud to have achieved a significant milestone with Rakesh’s case, successfully performing a complex bilateral total hip replacement surgery using advanced techniques and state-of-the-art medical technology. This accomplishment highlights our team’s expertise and innovative approach, allowing us to provide transformative treatment and make a meaningful impact on our patients' lives.”

Turkish Technic To Provide Component Support Services For Garuda Indonesia

Turkish Technic, a leading provider of aircraft and component maintenance, repair, and overhaul (MRO) services worldwide, has recently signed a multi-year Component Support Agreement with Garuda Indonesia, the flag carrier airline of Indonesia, at the MRO Asia-Pacific event held in Singapore.

This new agreement covers the Airbus A330 and Boeing 777 fleets of Garuda Indonesia, allowing the operator to benefit from Turkish Technic’s vast inventory of components and comprehensive solution services. This agreement ensures operational excellence with complete component support for Garuda’s fleet, building on the strong foundation of this new partnership.

Regarding the agreement Mikail Akbulut, CEO and Board Member of Turkish Technic, remarked: ‘‘We are excited to expand our collaboration with Garuda Indonesia, reaffirming the strength of our partnership. Our expertise in component support services has been pivotal in securing this agreement. With our warehouses located on 4 continents, we are ready to deploy critical components swiftly, ensuring minimal downtime for Garuda’s fleet. This agreement not only reinforces our global reach but also reflects our unwavering commitment to maintaining the highest standards of service quality and operational excellence for our partners. We look forward to continuing our successful partnership with Garuda Indonesia.”

Commenting on the continuation of the partnership, Irfan Setiaputra, President & CEO of Garuda Indonesia, expressed: “We are pleased to strengthen the partnership with Turkish Technic, as it marks our long-standing commitment to deliver enhanced operations excellence through a seamless maintenance process, especially for our Airbus A330 and Boeing 777 fleets with the immense support from the expertise of Turkish Technic in component support services. As Garuda Indonesia shows a significant growth demand recently aligning with our extensive network plans, our focus solemnly refers to maintaining the highest safety standard in our fleets. Thus, the reliable services provided by Turkish Technic are believed to bolster the excellence of our flight operations preparations without any hassle.”

Operating as a one-stop MRO company with high-quality support, competitive turnaround times, and comprehensive in-house capabilities at its state-of-the-art hangars, Turkish Technic provides maintenance, repair, overhaul, engineering, modification, tailor-made component support, and reconfiguration to many domestic and international customers at five locations.

About Turkish Technic

Turkish Technic (IATP: TKT), an association of Turkish Airlines group companies (Istanbul Stock Exchange: THYAO), is one of the world’s leading aviation services providers, where comprehensive maintenance, repair, overhaul, modification, and reconfiguration services are performed with a highly qualified workforce of 10.750 staff within Istanbul Ataturk Airport, Sabiha Gokcen Airport and Istanbul Airport facilities on two separate continents. Aside from its engineering and maintenance activities, Turkish Technic supports aircraft operators and owners globally with encompassing component pooling, design, certification, and production services. For more information: visit our website or connect with us on Facebook, X, Youtube, Linkedin, and Instagram.

About Garuda Indonesia

Carrying out the mandate as the national flag carrier for more than seven decades, Garuda Indonesia committed to connecting the archipelago while carrying the nation’s image to the world stage. With a top-notch fleet and a distinctive service concept highlighting Indonesian hospitality and as a part of SkyTeam Membership, Garuda Indonesia now serves at least 35 exotic destinations in Indonesia and 15 attractive destinations worldwide. Amid its ongoing transformation into a more agile, dynamic, and profitable company, Garuda Indonesia strives to undertake various initiatives to cater to a broader range of interests, ranging from being actively involved in humanitarian and environmental missions, collaborating with potential local brands, and maintaining synergistic cooperation with strategic partners to create more added value for society. With our service value #BecauseYouMatter, Garuda Indonesia is committed to consistently creating the best experience for all passengers by providing customer-focused flight services and maintaining high service standards, including on-time performance, throughout the flight experience. From pre-flights to post-flights, Garuda Indonesia passengers will sense a genuine experience that accentuates distinctive yet authentic Indonesian.

Next Bharat Ventures And Axis Bank Partner To Facilitate Working Capital Financing Solutions For Impact Entrepreneurs

*       This collaboration will ensure a seamless journey for Impact Entrepreneurs across India to avail working capital funding without any collateral.

Next Bharat Ventures IFSC Private Limited, a subsidiary of Suzuki Motor Corporation in Japan, signed a Memorandum of Understanding (MoU) with, Axis Bank, one of the largest private sector banks in India to provide tailored Working Capital Financing Solutions to impact-driven startups - Micro and Small Enterprises (MSE). This collaboration will enable MSE to secure credit without the traditional collateral requirements, thereby reducing financial hindrances and simplifying access to capital needed for business growth.

Through this initiative, Axis Bank will extend support to MSE across key sectors, chosen as part of Next Bharat Ventures' Residency Program. This four-month program, launching its first cohort in October 2024, is designed to empower entrepreneurs committed to driving impact in India’s rural and informal sectors. The startups selected under the program will have access to Axis Bank's comprehensive range of financial services and solutions, tailored to meet their specific needs.

The partnership will leverage Axis Bank's vast network of branches across India to deliver these financing solutions and simplify the credit evaluation process, thereby making it easier for startups to obtain debt financing. With a strong focus on Tier 2 and Tier 3 regions, this initiative will not only promote financial inclusion but also foster long-term economic growth in these underserved areas.

Speaking on the occasion, Munish Sharda, Executive Director, Axis Bank, said, “Speaking on the occasion, Munish Sharda, Executive Director, Axis Bank, said, “At Axis Bank, we recognize the pivotal role that entrepreneurs, especially those in the underserved regions, play in driving India’s economic growth. This collaboration with Next Bharat Ventures underscores our commitment to foster innovation and empower the entrepreneurial ecosystem, leading to the growth of India’s rural economy. By leveraging our financial expertise and extensive branch network, we aim to help these entrepreneurs scale their operations and achieve sustainable growth. This strategic collaboration reinforces our commitment to financial inclusion, giving us the opportunity to support the next generation of socially impactful business leaders.”

Vipul Nath Jindal, MD and CEO of Next Bharat Ventures, commented, “This partnership with Axis Bank marks an advancement to build a sustainable financial ecosystem for impact-driven entrepreneurs in India. By combining Axis Bank’s financial expertise in providing debt funding with Next Bharat’s tailored support for innovative social ventures, we are excited to see the advancement of high-impact startups in Bharat.”

By integrating Axis Bank’s financial capabilities with Next Bharat Ventures’ focus on nurturing social enterprises, the partnership aims to build a more inclusive and sustainable financial ecosystem for entrepreneurs while positioning them for long term success as self-sustaining MSEs. The collaboration will ensure that essential financial support reaches entrepreneurs in underserved regions, empowering them to drive meaningful economic progress and create lasting impact in their communities.

Surgical Robotics Pioneer Intuitive Opens Global Capability Centre In Bengaluru

·         Intuitive CEO Gary S. Guthart and Minister for Medical Education, Government of Karnataka, Dr. Sharanprakash Rudrappa Patil inaugurated the centre at a ceremony today.

·         The Global Capability Centre (GCC) will employ up to 250 full-time positions across a range of functions, a clear commitment from Intuitive to strengthening the surgical robotics ecosystem in India

Intuitive, a global technology leader in minimally invasive care and the pioneer in robotic-assisted surgery (RAS), announced the opening of its Global Capability Centre (GCC) in Bengaluru today. The new centre will drive innovation and enable the enhancement of operational efficiency across the global organisation. Gary S. Guthart, Intuitive CEO and Dr. Sharanprakash Rudrappa Patil, Minister for Medical Education, Skill Development, Entrepreneurship and Livelihood, Government of Karnataka inaugurated the centre today at its location at the Embassy Golf Links.

The GCC will serve as one of Intuitive’s core global hubs for functions including IT support, enterprise analytics, software quality, human resource management system (HRMS) and post-market surveillance, all of which strengthen the safety, performance and reliability of Intuitive’s systems and technologies. The GCC will be an important contributor to Intuitive’s operations, reflecting the company’s dedication to innovation, quality, and excellence.

While inaugurating the centre, Dr. Sharanprakash Rudrappa Patil, Minister for Medical Education and Skill Development, Entrepreneurship and Livelihood, Government of Karnataka said, "Today marks a significant step forward as we welcome the establishment of a Global Capability Center in Bangalore, a city known for its dynamic growth and future potential. We recognize the pivotal role of cutting-edge technologies like robotics in the future of surgery and are committed to supporting such innovations. This Global Capability Center will play a crucial role in training more doctors, a field where India has immense potential and already produces some of the finest medical professionals globally. With further collaboration, including public-private partnerships, we can expand these advancements to even the most remote areas. The government looks forward to working with medical technology leaders like Intuitive to bring modern healthcare technology to every corner of Karnataka."

Announcing the opening of the GCC in Bengaluru, Gary S Guthart, CEO of Intuitive said, “Intuitive is committed to building a strong presence and contributing to the growth of the healthcare ecosystem in India. This Global Capability Centre will play an important role in helping us to advance minimally invasive healthcare technology, and the ecosystem of services, support and insight that ensure its successful use and adoption.”

Intuitive expects to have more than 250 full-time positions at the GCC, including functions that will add value to the overall product lifecycle, including product upgrades, quality improvement, and customer service. This expansion aligns with Intuitive’s commitment to fostering a dynamic and inclusive workplace culture, and the team at GCC will embody Intuitive’s core values of integrity, transparency, and flexibility.

“Opening the Global Capability Centre here in Bengaluru is about more than expanding our operations—it reinforces our commitment to innovation, safety, quality and performance. Bengaluru, known for its vibrant technology development and skilled talent pool, provides an ideal environment for our Global Capability Centre, and we believe it can help us drive our mission forward to improve patient outcomes through advanced robotic surgical technologies,” said Darla Hutton, Vice President Commercial Operations and Marketing Asia & Interim General Manager India, Intuitive

Intuitive has thoughtfully advanced minimally invasive care in India through advanced robotic technology, supported by an innovative ecosystem of learning, services, and solutions. Intuitive technology can be found in in leading private and government hospitals, Medical Institutes and State Government Medical Colleges across the country. To date, more than 850 surgeons have been trained on Intuitive’s da Vinci technology and more than 100,000 procedures performed in India.

Mobileware Technologies Raises INR 15.6 Crore From Zaggle To Accelerate Growth And Innovation In Digital Transactions

Mobileware Technologies, a leading provider of cutting-edge digital payment solutions, secures an investment of INR 15.6 crore from Zaggle, a prominent player in the fintech and SaaS space.  Lastaki Advisors and Khaitan & Co were the advisors to Mobileware for the transaction.

The newly acquired funds will be utilized to expand the team, drive product innovation, and enhance the range of product offerings. This investment positions Mobileware to boost productivity, tap into new customer segments, and potentially establish a presence in international markets.

Mainly, this investment will enable Mobileware Technologies to bridge the gap between financial services and technology by enhancing its flagship API banking platform, TransXT, also known as 'Bank in a Box.' Currently, TransXT serves over 80 banks and 20 fintech companies, either through direct banking relationships or system integrator (SI) partnerships. Mobileware provides seamless, secure digital payment solutions including NPCI-certified UPI, IMPS, BBPS, and AePS switches.

Mr. Satyajit Kanekar, Co-Founder of Mobileware Technologies, commented on the investment, stating, "With the increasing volume of digital transactions, we are witnessing a revolution that extends beyond borders. According to the ACI Worldwide Report, approximately 49% of global real-time payment transactions occur in India. This underscores that digital transformation in the payment landscape is no longer optional; it is essential for businesses aiming to remain competitive and meet the changing expectations of their customers. This investment marks a pivotal moment for us to further innovate in the payments space and strengthen our partnerships with banks and financial institutions across the country."

Amitabh Kanekar, Co-Founder of Mobileware, added, "The investment from Zaggle serves as a significant endorsement of our vision and capabilities. With our established partnerships with NPCI and a strong commitment to compliance and security, we are well-positioned to enhance India’s digital infrastructure and contribute to a cashless economy. At Mobileware, we are dedicated to making digital payments faster, safer, and more accessible for everyone."

IMS Rollout Could Curtail Festive Sales Opportunity For Retailers: Empower India

* Seeks 12 months extension before implementation to account for the upcoming festive season

The Goods and Services Tax Network (GSTN) has proposed to launch the Invoice Management System (IMS) with effect from October 1, 2024. While the objective of IMS is to streamline the input tax credit (ITC) claim process, but lack of preparation will not only increase the compliance burden but also impede the efficient deployment of capital. Under the new system, the recipient taxpayer will be required to accept or reject every invoice or credit note or keep as pending instead of the current system where businesses can simply claim ITC on their own. Post its rollout, theoretically, IMS will allow registered recipients to match their records with invoices issued by suppliers in their GSTR-1 however, lack of legal backing for the IMS proposal is a major concern, as taxpayers are currently doing self-assessment and claiming ITC in their GST returns.

K. Giri, Director General, Empower India said, “It is prudent to defer the introduction of IMS as it could impact the retail ecosystem during the festive season when they conclude 30-35% of their yearly sales. Also, for the retail ecosystem, a new guideline to be followed in middle of a busy sales period is an unwarranted distraction. The lack of a functional supplier dashboard, which would provide visibility on recipient actions, further complicates the implementation.”

Areas of improvement:

Stakeholders have identified the need for improvements in the IMS, such as the inclusion of GSTR-1 and GSTR-3B filing status for suppliers, as well as the ability to validate data at the invoice level rather than the rate level.

The treatment of credit notes when rejected by customers is a major concern as it would add up to the tax liability of the supplier.

Consultation with small businesses and with the last retailer is critical for success of such an initiative which is all pervasive.

Allowing credit notes to be kept pending, providing sufficient time for alignment before automatic addition of tax liability, and enabling suppliers to issue debit notes to offset rejected credit notes are some of the recommendations from taxpayers.

The current proposal lacks clear mechanism for suppliers to dispute any incorrect or mischievous rejection of credit notes by their customers.

As the government continues to refine the IMS, it is crucial that policymakers engage closely with businesses to address these pressing concerns and ensure a smooth transition to the new compliance regime. The companies are already handling a major GST change by way of Input Service distribution becoming mandatory from the next financial year, and this unannounced change further complicates the compliance process. A collaborative approach between the government and the business community is essential to address the complexities of the new Invoice Management System. Business should be allowed at least 12 months to prepare for the implementation of IMS.