Capgemini has announced its Q3 FY2021
Q3 2021:
- Revenues were €4,552m, up 12.9% y/y at CC and up 13.2% y/y at CC/CS.
Q3 2021 revenue breakdown (and revenue growth at CC) by geography was:
- North America: €1,360m (+12.3%).
- U.K./Ireland: €552m (+18.1%).
- France: €894m (+6.2%)
- Exluding the sale of Odigo - RoE: €1,362m (+12.1%)
- APAC/LatAm: €384m (+29.5%).
Q3 2021 revenue growth at CC by segment was:
- Strategy & Transformation (7%, ~€319m): +27.4%
- Applications & Technology(62%, ~€2,822m): +16.3%.
- Operations & Engineering: (31%, ~€1,411m): +7.3%
- Engineering was up 15%.
Q3 2020 revenue growth at CC by vertical was:
- Financial services (22%, ~€1,001m): +5.4%
- Energy & utilities (8%, ~€364m): -2.1%
- Manufacturing (25%, ~€1,138m): +19.0%
- Consumer goods & retail (13%, ~€592m): +27.9%
- Public sector (14%, ~€637m): +14.2%
- Telecom, media technology (13%, ~€592m): 10.5%
- Services (5%, ~€228m): +18.1%.
Q3 bookings were €4,608m, up 15.0% at CC.
Capgemini has raised its guidance for full-year 2021:
- Revenue growth at CC in the range of 14.5-15.0% (previously 12.0-13.0%. The growth includes 5 pts of M&As
- An adjusted EBIT margin above 12.7% (previously 12.5-12.7%)
- Organic FCF above €1,700m (previously €1,500m).
| Vendor | Capgemini |
| Initial currency type (specify local currency used) | Euro |
| Period Ending | 2021-09-30 |
| Growth | 13.6 |
| Revenues ((m) in local currency | 4552 |
| Revenues (in $m at that date) | 5315 |
Analyst comments:
Capgemini's organic growth in Q3 2021 (+13.2%) was slightly better than in Q2 (12.9%), despite a less favorable comparable basis (-3.6% in Q3 2020 vs. -7.7% in Q2 2020). Q4 should also be good, with an organic growth estimated by NelsonHall of at least 8%. Capgemini fires on all cylinders with Capgemini Invent driven by digital transformation and product engineering design consulting. Engineering, the former Altran, rebounded by 15%.
The performance of Capgemini on the revenue side is more and more Indian. The company still underperforms Infosys, which has a similar M&A strategy, by 6 pts. The difference may sound a lot but Capgemini had not grown organically by double digits in many years. The good news is that growth is across sectors, and not just in its Indian-centric Financial Services application unit, which is the most advanced of the group in terms of Indian leverage.
Finally, Capgemini added a net 44,700 positions y/y reaching a 309k headcount. By comparison, Infosys added 39,400 positions in the LTM, reaching a headcount of 280k. With Capgemini now hiring new graduates three to six months in advance, the company is, therefore, optimistic about its future in the two one to two quarters.