By Sai Ishwarbharath B
BENGALURU (Reuters) – Wipro, India’s No.4 software-services exporter, edged past already lowered revenue expectations in the fourth quarter, helped by strength in its healthcare business.
The company’s consolidated revenue fell 4.2% to 222.08 billion rupees ($2.66 billion) in the quarter, topping analysts’ average estimate of 221.51 billion rupees, as per LSEG data. Revenue in its healthcare segment rose 9%.
“The numbers are largely in line with expectations as it was already low,” said Centrum Broking analyst Piyush Pandey. “I think the new CEO may need two to three quarters to steady the ship.”
Less than two weeks back, Wipro appointed company veteran Srinivas Pallia as its chief executive following the abrupt departure of Thierry Delaporte, whose term was filled with a string of top-level exits and a dearth of big deal wins.
That, in part, led to Wipro’s full-year IT services revenue sliding 4.4%, in constant currency terms, marking the first fall since fiscal 2021.
Wipro, the only one among the top IT companies to give a quarterly forecast, said it expects IT services revenue of $2.62 billion to $2.67 billion in the current quarter, indicating a sequential decline of 1.5% to a growth of 0.5%.
India’s $254 billion IT services industry has been grappling with clients tightening their purse strings due to stubbornly high inflation, geopolitical risks and economic uncertainty. Nasscom estimated overall revenue growth more than halved to 3.8% last financial year.
Earlier this week, Wipro’s bigger rivals Infosys and Tata Consultancy Services posted lower-than-expected revenue for the fourth quarter.
“FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. However, I am optimistic about the opportunities that lie ahead. We are on the brink of a major technological shift,” Wipro’s Pallia said.
The company’s net profit fell 7.9% to 28.35 billion rupees, but beat analysts’ average estimate of 27.82 billion rupees.
Total order bookings fell to $3.6 billion from $3.8 billion in the previous quarter and $4.1 billion in the year-ago period. ($1 = 83.4643 Indian rupees)
(Reporting by Sai Ishwarbharath B; Editing by Savio D’Souza and Dhanya Skariachan)