{"id":25968,"date":"2023-04-27T13:54:11","date_gmt":"2023-04-27T13:54:11","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/indias-wipro-posts-dip\/"},"modified":"2023-04-27T13:56:11","modified_gmt":"2023-04-27T13:56:11","slug":"indias-wipro-flags-weak","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/indias-wipro-flags-weak\/","title":{"rendered":"India’s Wipro flags weak Q1 IT sales growth as clients cut spending"},"content":{"rendered":"

By Navamya Ganesh Acharya<\/p>\n

BENGALURU (Reuters) – India’s Wipro Ltd said on Thursday its IT services revenue growth in the current quarter could be as low as 0.6% as clients cut down on discretionary spending, highlighting the near-term struggle that the country’s IT companies face.<\/p>\n

Wipros’ bigger peers Infosys Ltd and HCLTech Ltd have indicated their revenue growth would range from 4% to 8% for the year as U.S. and European clients postpone and even cancel deals due to the weak economic environment globally.<\/p>\n

However, Wipro, the only one among its peers that gives a nearer-term forecast, flagged an even weaker start to the year. It expects IT services revenue to increase between 0.6% and 2.8% in the April-June quarter, compared with the year-ago period.<\/p>\n

That growth is also less than the 3.7% increase in IT services revenue, which accounts for about 98% of total revenue, Wipro reported for the fourth quarter.<\/p>\n

The Bengaluru-based company’s pace of growth in IT services revenue has declined for six straight quarters, with the current quarter’s estimated growth the smallest in at least nine quarters.<\/p>\n

The subdued forecast comes even as Wipro reported a 29% jump in deal wins, to $4.1 billion, on constant currency basis.<\/p>\n

“While there is a good activity happening (in terms of deals) … there’s also a slowdown in the discretionary spends and that is visible in particular in some industries like banking, financial services and technology,” CEO Thierry Delaporte said in a media conference.<\/p>\n

Wipro’s revenue rose 11.2% to 231.9 billion rupees ($2.84 billion) in the quarter ending March.<\/p>\n

But its net profit dipped 0.4% to 30.75 billion rupees, weighed by a 12.4% jump in costs. Its operating margin fell to 16.3% from 17% year ago.<\/p>\n

Wipro also approved a share buyback of upto 120 billion rupees and said that its promoters intend to participate in the buyback.<\/p>\n

Earlier in the day, its smaller rival Tech Mahindra reported a 26% drop in fourth-quarter profit. ($1 = 81.7900 Indian rupees)<\/p>\n

\n

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Nivedita Bhattacharjee and Savio D’Souza)<\/p>\n

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By Navamya Ganesh Acharya BENGALURU (Reuters) – India’s Wipro Ltd said on Thursday its IT services revenue growth in the current quarter could be as low as 0.6% as clients cut down on discretionary spending, highlighting the near-term struggle that the country’s IT companies face. Wipros’ bigger peers Infosys Ltd and HCLTech Ltd have indicated […]<\/p>\n","protected":false},"author":8,"featured_media":25969,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-25968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3Q0FF-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/25968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=25968"}],"version-history":[{"count":4,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/25968\/revisions"}],"predecessor-version":[{"id":26295,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/25968\/revisions\/26295"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/25969"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=25968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=25968"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=25968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}