India’s Wipro misses quarterly profit view, sees muted Q2 IT services revenue
INDIA’S Wipro reported first-quarter profit below estimates on Thursday (Jul 13) as clients cut discretionary spending and forecast IT services revenue would remain largely flat for the current quarter.
The Bengaluru-based company said its second-quarter IT services revenue, which accounts for the majority of overall revenue, could range between US$2.72 billion to US$2.81 billion in constant currency terms, compared with US$2.8 billion a year ago.
The muted forecast comes as earnings for Indian IT services companies started on a weaker note, with Wipro’s larger peers Tata Consultancy Services and HCLTech flagging cut in discretionary spending by clients to save cash and uncertainty over demand.
Wipro’s net profit rose nearly 12 per cent to 28.70 billion rupees (S$463.4 million) for the quarter ended Jun 30, helped by large order wins. However, on a sequential basis, profit dropped 6.7 per cent.
Analysts on average had expected a profit of 29.8 billion rupees, according to Refinitiv IBES data.
Revenue from operations increased 6 per cent to 228.31 billion rupees from a year ago, its slowest pace since quarter-ending March 2021.
There was a gradual reduction in clients’ discretionary spending, chief executive officer Thierry Delaporte said in a statement.
Total order bookings stood at US$3.7 billion for the quarter, with large deal bookings rising 9 per cent to US$1.2 billion year on year.
Indian IT companies are seeing delays in deal closures, order rampdowns, and cancellations prompted by recession worries in key markets in the US and Europe. REUTERS
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