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Wipro Profit Drops 7%, Revenue Growth Slows
16 Jan
Summary
- Net profit declined by 7% to Rs 3,119 crore in the December quarter.
- Fourth-quarter revenue is projected to grow between flat and 2% sequentially.
- Total deal bookings decreased to $3.34 billion from the previous quarter.
Wipro reported a 7% decline in net profit for the December quarter, reaching Rs 3,119 crore. This figure was adjusted for a Rs 300 crore charge related to India's new labor codes. The Bengaluru-based IT services company anticipates its fourth-quarter revenue to experience a modest sequential increase, projected to be in the range of flat to 2%. This forecast suggests revenue will fall between $2.64 billion and $2.69 billion.
Total deal bookings for the quarter amounted to $3.34 billion, which represents a decrease compared to the $4.69 billion recorded in the preceding quarter but an increase from $3.5 billion in the same quarter last year. Notably, the crucial banking and financial services sector, accounting for over a third of Wipro's revenue, saw a demand pickup, with its revenue growing by 1.6%.
This performance occurs amidst mixed signals in the broader IT industry, with competitors like TCS and HCLTech reporting stronger results and optimistic outlooks for calendar year 2026. Wipro's American Depository Receipts (ADRs) reflected market sentiment, trading 5.5% lower in New York on January 16.
