Wipro ADR Down Over 6% After Q4 Results, Lower Revenue Guidance

The American Depositary Receipts of Wipro Ltd. sank 6.7% to trade at $2.63 in New York on Wednesday after the company released its fourth quarter results and lowered revenue guidance for the April-June period, citing global tariff uncertainty.

ADRs are securities issued by a US bank that represent ownership in shares of a foreign company. These securities are denominated in dollars and traded in US markets.

Wipro's outlook for the first quarter of the current fiscal year remains muted amid an uncertain macro environment, as the company guides for a degrowth of 3.5% to 1.5%.

Its guidance for the fourth quarter was -1% to 1%. The Bengaluru-based software exporter now expects revenue from the IT services business segment to be in the range of $2,505 million to $2,557 million.

The management said the guidance bakes in the uncertainty in the demand environment and is based on the current visibility that the company has.

"Recent tariff announcements have only added to the uncertain demand environment," Chief Executive Officer Srini Pallia said. "Underlying demand for tech reinvention remains strong but clients are approaching cautiously."

While the US has imposed tariffs on merchandise goods, fears over the resultant inflation and recession in the world's largest economy will cause a slowdown in IT services spending and impact Indian software majors.

Meanwhile, consolidated revenue in the January-March quarter of the last financial year rose 0.8% sequentially to Rs 22,504.2 crore, meeting the Rs 22,684-crore consensus estimate of analysts tracked by Bloomberg.

The information technology major's net profit increased 6.6% sequentially to Rs 3,588 crore, beating the consensus estimate of Rs 3,364 crore.

Before the quarterly results were declared, shares of Wipro closed 1.39% higher at Rs 247.5 apiece on the BSE, compared to a 0.4% advance in the benchmark Sensex.