Bangalore: K Shares Wipro Ltd fell as much as 6.3 per cent on Thursday, a day after the Indian IT services provider posted a weak growth in quarterly profit, while larger peers posted strong results amid an upbeat demand outlook.
Wipro on Wednesday posted 30 per cent growth in December-quarter revenue but flat net profit growth, while Infosys raised its revenue forecast and Tata Consultancy Services forecast strong demand, saying they expect technical spending to continue. Hopefully, especially for digital services.
Wipro said it struck 11 large deals in the third quarter with total contract value of more than $600 million, but analysts at Ambit Capital termed the win as “tepid”, adding that the total value was substantially lower than the previous quarter. was unchanged.
Bengaluru-based Wipro estimates revenue from the IT services segment to be in the range of $2,692 million to $2,745 million in the March-quarter, as against $2,639.7 million in the December quarter. The company also said that its pipeline showed a healthy mix of large and medium-sized deals.
“Given Wipro’s strong performance over the past few quarters, coupled with positive demand commentary from management, guidance was overwhelming and will act as a drag on near-term share price performance,” Motilal Oswal said in a note.
India’s software services sector has won more business during the COVID-19 pandemic as companies globally seek to boost their digital presence and seek IT services ranging from cloud-computing, digital payments infrastructure to cyber security.
Shares of Wipro have fallen 9.2 per cent so far this year after a jump of over 85 per cent in 2021. Shares of Infosys and TCS had gained 50 per cent and 31 per cent, respectively, last year.
Wipro on Wednesday posted 30 per cent growth in December-quarter revenue but flat net profit growth, while Infosys raised its revenue forecast and Tata Consultancy Services forecast strong demand, saying they expect technical spending to continue. Hopefully, especially for digital services.
Wipro said it struck 11 large deals in the third quarter with total contract value of more than $600 million, but analysts at Ambit Capital termed the win as “tepid”, adding that the total value was substantially lower than the previous quarter. was unchanged.
Bengaluru-based Wipro estimates revenue from the IT services segment to be in the range of $2,692 million to $2,745 million in the March-quarter, as against $2,639.7 million in the December quarter. The company also said that its pipeline showed a healthy mix of large and medium-sized deals.
“Given Wipro’s strong performance over the past few quarters, coupled with positive demand commentary from management, guidance was overwhelming and will act as a drag on near-term share price performance,” Motilal Oswal said in a note.
India’s software services sector has won more business during the COVID-19 pandemic as companies globally seek to boost their digital presence and seek IT services ranging from cloud-computing, digital payments infrastructure to cyber security.
Shares of Wipro have fallen 9.2 per cent so far this year after a jump of over 85 per cent in 2021. Shares of Infosys and TCS had gained 50 per cent and 31 per cent, respectively, last year.
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