Wipro has revised its revenue guidance for the September quarter of the current financial year (Q2FY25), reflecting the pressure the Bengaluru-based IT firm is seeing in key markets and the fact that discretionary spending has yet to pick up.
It reduced the lower end of the guidance and raised the upper end in the range of -1 percent to 1 percent for Q2. In April, the company revised its revenue guidance to (-) 1.5 percent to 0.5 percent, the company said in a release on July 19.
In January, the IT services firm adjusted its revenue growth guidance for the fourth quarter at both the lower and upper end to -1.5 percent to 0.5 percent. This was after the company cut the guidance to -3.5 percent to -1.5 percent in October.
Wipro won large deals worth $ 1.2 billion during the quarter, down 3.6 percent on-year. The company’s total deal wins stood at $ 3.3 billion, down 11.8 percent on-year in constant currency terms.
“We recorded another quarter of total large deal bookings over $1 billion, with our largest win in recent years,” Wipro's chief executive officer Srinivas Pallia was quoted as saying in the release.
Wipro’s Q1 net profit rose 4.6 percent from a year ago to Rs 3,003 crore, beating market expectations. Its consolidated revenue fell 3.8 percent to Rs 21,964 crore.
On July 18, rival Infosys raised its revenue growth guidance in the range of 3 percent to 4 percent for the financial year 2024-25, surprising the Street positively. Analysts had anticipated Infosys to maintain its FY25 revenue growth guidance at 1-3 percent in constant currency (CC) terms.
Attrition this quarter further moderated to 14.1 percent from 14.2 percent last quarter.
Meanwhile, Wipro's Q1 FY25 net profit rose 4.6 percent from a year ago to Rs 3,003 crore, beating analyst expectations. However, the IT company’s April-June consolidated revenue fell 3.8 percent to Rs 21,964 crore.
A Moneycontrol poll of brokerage estimates had pegged Wipro’s Q1 net profit to rise to Rs 2,953 crore, and revenue to fall to Rs 22,229 crore.
Also read: Wipro’s headcount increases by 337 in Q1, reverses decline after six quarters
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
