India’s Wipro beats Q4 revenue estimates

By Thomson Reuters Apr 19, 2024 | 5:28 AM

By Sai Ishwarbharath B

(Reuters) – Wipro, India’s fourth-largest software company, posted a bigger-than-expected fourth-quarter revenue on Friday, aided by firmer profit margins and a recovery in its consulting business.

The company’s consolidated revenue decreased 4.2% to 222.08 billion rupees ($2.66 billion) in the January-March quarter, but beat analysts’ expectation of 221.51 billion rupees, as per LSEG data.

India’s IT services industry has been grappling with clients tightening their purse strings due to stubbornly high inflation and geopolitical risks. Industry body Nasscom estimated overall revenue growth more than halved to 3.8% last financial year.

Wipro has been further hobbled by the departure of key executives, including CEO Thierry Delaporte, who resigned earlier this month and Stephanie Trautman, who was in charge of securing large contracts, in December.

Bengaluru-based Wipro’s net profit fell 7.9% to 28.35 billion rupees in the latest quarter. Analysts estimated a profit of 27.82 billion rupees, as per LSEG data.

A day earlier cross-town rival Infosys reported a smaller-than-expected revenue for the quarter, while a week back, market leader Tata Consultancy Services posted lower-than-expected revenue, although it said it expected a strong deal pipeline to drive growth this fiscal year.

($1 = 83.4643 Indian rupees)

(This story has been corrected to say analysts estimated a profit, not loss of 27.82 billion rupees, in paragraph 5)

(Reporting by Sai Ishwarbharath B; Editing by Savio D’Souza)