Wipro Deal Bookings Hit Four-Year Low as Profit Slips
Wipro’s contract bookings fell to $2.6 billion, while quarterly profit declined and the company forecast a mixed range for IT services revenue.
Key takeaways
- Wipro’s contract bookings fell to $2.6 billion from $4.7 billion a year earlier.
- Net profit declined 1.4% year on year, while revenue rose 9.1%.
- Wipro forecast Q3 IT services revenue growth of -1.5% to 0.5% sequentially.
Wipro’s total contract value bookings dropped to $2.6 billion in the quarter ended September 30, from $4.7 billion a year earlier, CNA reported. The bookings figure was near a four-year low, adding to concerns about the company’s ability to win new business.
The company reported net profit of 3,201 crore rupees, down 1.4% year on year, while revenue rose 9.1% to 24,752.7 crore rupees, according to The Economic Times. Large deal bookings fell 58.6% quarter on quarter in constant currency terms to $674 million.
Indsec Securities analyst Rishubh Vasa said Wipro’s ability to win new business had weakened over the past two to three quarters. Pareekh Jain, founder of IT research firm EIIR Trend, said the company’s dual focus on margins and revenue was not working.
For the third quarter, Wipro expects IT services revenue of $2,571 million to $2,625 million. The range implies sequential growth of between a 1.5% decline and 0.5% growth in constant currency terms. CEO Srinivas Pallia said seasonal furloughs would weigh on performance.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
