Wipro slides 10% on weak Q4 outlook, lacklustre deal wins
Wipro slides 10% on weak Q4 outlook, lacklustre deal wins
Wipro’s stock falls after a cautious Q4 revenue forecast and soft bookings hint at growth challenges for the Bengaluru-based IT giant.
Wipro's shares slid about 10% on Monday after the company projected a fourth-quarter revenue that would be flat to up 2% sequentially, including acquisitions. Total deal bookings in the third quarter were $3.34 billion, the lowest in six quarters, weighing on sentiment and underscoring a softer growth environment for the Bengaluru-based IT services exporter.
Analysts have attributed the miss to softer deal wins and delays in project ramp-ups, a combination that contrasts with the steadier performance from larger peers. Wipro's American depositary receipts fell sharply in after-hours trading as investors digested the weaker outlook and the softer summer quarter. The results and outlook come at a time when Tata Consultancy Services and Infosys have reported more resilient deal wins and revenue growth, highlighting a widening gap within the sector.
In the December quarter, Wipro posted a net profit attributable to equity shareholders of Rs 3,119 crore, marking a decline from the year-ago period. The numbers underscore ongoing challenges in converting pipeline into revenue and the importance of a stronger bookings cadence to support top-line growth going into the March quarter.
