Wipro s September quarter results (Q2FY24) were in line with weak industry trends, reflecting mounting worries of narrowing client spending for IT services.
Similar to other peers, Wipro expects a continued revenue decline with Q3 constant currency (cc) IT revenue projected to fall 3.5 to 1.5 per cent sequentially, ahead of what many analysts expected.
The stock took a hit on Thursday and fell up to 4 per cent intra-day as brokerages lowered Wipro s earnings estimates for financial year 2024 and 2025 and trimmed price targets on the scrip.
The impact of the banking crisis in the US was visible in IT bellwether Tata Consultancy Services (TCS) weak performance in the March quarter of fiscal 2023 (Q4FY23).
The firm witnessed slower revenue growth in Q4FY23 and failed to meet its FY23 exit Ebit margin of 25 per cent as some clients, especially in the North American region, took to pausing projects and rising onsite costs offset utilisation gains.
Sequentially, the company s revenue grew by just 0.6 per cent on a constant currency basis, which was one of the slowest paces in over 11 quarters.
Ebrahim Raisi News | Latest News newsnow.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from newsnow.co.uk Daily Mail and Mail on Sunday newspapers.