Wipro said its IT services revenue growth in the current quarter could be as low as 0.6 percent as clients cut down on IT spending.
Wipro expects revenue from IT Services business to be in the range of $2,753 million to $2,811 million during the current quarter of April-June 2023.
Wipro has closed the financial year with 256,921 employees.
Infosys and HCLTech have indicated their revenue growth would range from 4 percent to 8 percent for the year as U.S. and European clients postpone and even cancel IT deals due to the weak economic environment globally.
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 percent and 2.8 percent in the April-June quarter, compared with the year-ago period.
That growth is also less than the 3.7 percent increase in IT services revenue, which accounts for about 98 percent of total revenue, Wipro reported for the fourth quarter.
Wipro’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.
Wipro reported a 29 percent jump in deal wins, to $4.1 billion.
Wipro’s revenue rose 11.2 percent to 231.9 billion rupees ($2.84 billion) in the quarter ending March.
Its net profit dipped 0.4 percent to 30.75 billion rupees, weighed by a 12.4 percent jump in costs. Its operating margin fell to 16.3 percent from 17 percent year ago.
Wipro’s IT Services revenue increased to $2,823.0 million, an increase of 0.7 percent QoQ and 3.7 percent YoY.
IT Services operating margin for the quarter was at 16.3 percent, flat QoQ
Wipro’s IT Services revenue for fiscal 2022-23 increased to $11,159.7 million, an improvement of 7.8 percent YoY. IT Services operating margin for the fiscal year was at 15.7 percent, a decrease of 205bps YoY.
Earlier in the day, its smaller rival Tech Mahindra reported a 26 percent drop in fourth-quarter profit.
Wipro CEO Thierry Delaporte said: “We closed FY23 with the strongestever bookings recorded in a year. We delivered two consecutive quarters of total bookings of over $4.1 billion. Our large deal order booking grew by 155 percent for the quarter.”
