Capgemini posts muted third quarter results; maintains revenue guidance
IT services and consulting firm Capgemini posted muted set of September quarter results, which is in line with its Indian and global peers.
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Bengaluru, 8 November IT services and consulting firm Capgemini posted muted set of September quarter results, which is in line with its Indian and global peers.
Amid a tough demand environment, revenue fell 3.8 per cent sequentially, while bookings were muted.
However, the French-headquartered company maintained its revenue growth guidance of 4-7 per cent in the financial year of 2023. The company follows January-December financial year cycle. Similarly, its margin growth guidance remained at 13-13.2 per cent as the IT firm expects to touch the top end of the guidance for the full year led by a focus on operational efficiency.
Revenues in the North America region, comprising 29 per cent, were down by 4 per cent. The United Kingdom and Ireland region, which contributed 12 per cent of revenues, grew 5 per cent driven by the growth in the public sector and the consumer goods and retail sector.
The rest of Europe region that contributed 30 per cent of revenues, grew 5.4 per cent fuelled by the public sector and the manufacturing, energy and utilities sectors.
"In a macroeconomic context that remains challenging, clients are holding onto their digital transformation ambitions. They are increasingly focusing on projects with faster payback, such as those boosting operational efficiency, which in turn fuels steady growth of the Group’s innovative offers. The Group’s activities involving Data and Artificial Intelligence and those in Intelligent Industry were the fastest growing in Q3," Capgemini said.
During the third quarter, Capgemini’s total headcount fell like many of its Indian and global peers. Its total headcount stood at 342,700, down by 4 per cent year-on-year.
While onshore workforce was virtually stable at 146,700 employees, the offshore workforce was down 7 per cent to 196,000 employees, constituting 57 per cent of the total headcount. Notably, the company’s largest offshore talent base is in India and sources in the know said that headcount in this geography has fallen sharply.
