Energy vertical pickup critical for Wipro to regain growth: Pros

Wipro’s weak guidance for the second quarter is disappointing but analysts tracking the sector say it was more or less anticipated considering the energy vertical, which contributes close to 15 percent to the company’s total revenue, has been stagnant for a while.

Ravi Menon of Elara Capital, in an interview to CNBC-TV18 said there is some uptick in capacity expansions in the energy space which might provide some fillip to Wipro's IT business in the coming years. However, right now this vertical will prove to be a drag.

Menon said the company had indicated at some pilot projects being under progress, which might have got delayed and hit this quarter numbers.

Karan Taurani of Dolat Capital points out Wipro is unable to deleverage from the energy space as most of its big clients are from this space.