The company has guided for 0 to 2 percent QoQ in CC terms building softness in renewals.
The December quarter earnings of Wipro, the country's fourth-largest IT company by market capitalisation, matched analyst expectations with revenue rising 3 percent sequentially.
Dollar revenue grew by 2.2 percent and constant currency revenue growth stood at 1.8 percent QoQ during the quarter.
Wipro expects constant currency (CC) revenue during the last quarter of FY20 to grow in the range of 0-2 percent compared to the third quarter.
Here are key highlights from Wipro's conference call by Narnolia Financial Advisors:
Management Participants: Abidali Z Neemuchwala - CEO & MD and Jatin Dalal - CFOVertical update
- Financial service segment reported a slowdown. However, the management remains confident in winning the new deals by levering its strong digital capabilities and expects to see growth coming in next year. Q4FY20 to see some challenges.
For All Earnings Related News - Click Here
- In consumer vertical, the company grew 12.1 percent YoY in CC terms led by sustainable deals win. However, management expects the retail industry to continue to be choppy and volatile.
- E&U and Communication continue to grow moderately. The company sees recovery in manufacturing and is encouraged by the order book and pipeline.
- Healthcare vertical saw a seasonal uptick in HPS business as Q3FY20 saw open enrollment period. ACA continues to remain the area of uncertainty going ahead.
Demand Environment: The overall demand environment has neither improved nor deteriorated during the quarter. The management continues to see the same level of uncertainty due to the various geopolitical risks at play. The company feels that the funnel is better with large deals, as well as, with average size deals with majorly coming from digital.
Digital business: In digital, the revenue grew 22.8 percent YoY and now contributes over 40 percent of revenues. Q3FY20 saw some softness but the Management believes it’s to be short term phenomena and digital growth to continue.
Cloud studio: The company has accelerated the cloud journey for the customers by migrating more than 39,000 workload and 2,900 applications.
ITI Acquisition: The company completed the ITI acquisition in this quarter. Thus acquisition will help Wipro to build momentum in Industry 4.0 and IoT offerings and will enable the company with a new set of clients to create differentiated value. The contribution from the acquisition in the current quarter was 0.3 percent.
Wipro HOMES: The company won a contract from a large based UK client in financial market data and infrastructure by leveraging the capabilities of Wipro HOMES.Guidance for Q4FY20: The company has guided for 0 to 2 percent QoQ in CC terms building softness in renewals.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.