The American Depository Reciepts (ADRs) of Wipro Ltd. fell over 4% in trade, after the IT major projected up to 2% degrowth in its IT services revenue for the April-June quarter of the current fiscal.
The ADRs were trading at $2.17 apiece at 11:31 a.m. EST (9:01 p.m. IST), marking a decline of 4.41% as against the previous session's close.
A deeper look at the IT giant's performance, which appears to be meeting analysts' expectations, revealed that it stands on shaky ground when it comes to dollar revenue from IT services.
The company projects that revenue from IT services will come in at a range of $2,597 million to $2,651 million, translating into sequential guidance of -2.0% to 0%.
"We expect revenue from our IT Services business segment to be in the range of $2,597 million to $2,651 million. This translates to sequential guidance of -2.0% to 0% in constant currency terms," the company stated in a press release on Thursday.
Notably, while the company's gross CC revenue saw an uptick of 4.0% YoY to $9.9 billion, for year-ended March 31, 2026; there was a decline of 0.3% in its IT services segment revenue to $10,478.1 million for the financial year under review.
Besides this, weakness was also witnessed in the Banking, Financial Services, and Insurance (BFSI) segment. BFSI segment registered a 1.3% sequential decline in Q4, impacted by hurdles in scaling up.
These hurdles have to do with bottlenecks, inefficiencies, or failures that occur when a company attempts to rapidly increase production, and ramp up operations.The impact will likely sustain the first quarter performance of the firm, according to CEO and MD Srini Pallia.
Wipro Q4 Results Highlights (Cons, QoQ)
- Net Profit up 12.3% at Rs 3,501 crore versus Rs 3,119 crore.
- Revenue up 2.9% at Rs 24,236 crore versus Rs 23,556 crore.
- Board Approves Buyback At Rs 250 per share.
- Board Approves Buyback Worth Rs 15,000 crore.
How Did Shares End In India?
Wipro's stock closed 0.24% higher at Rs 210.26 apiece on the NSE, ahead of its financial results announcement. This compares to a 0.14% decline in the Nifty index on Thursday.
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