Wipro posts third straight sequential revenue drop

Wipro Ltd saw its quarterly dollar revenue fall 2.3% sequentially in the September quarter, marking the third straight such decline for the fourth-largest Indian IT services firm.

- Varun Sood

Bengaluru-based Wipro’s performance in the first six months of the current financial year has lagged behind its larger rivals, with the company’s revenue in the April-September period declining 1.5% from a year earlier. During this period, Tata Consultancy Services Ltd (TCS), Infosys Ltd and HCL Technologies Ltd recorded a dollar revenue growth of 5.7%, 3.7% and 5.2%, respectively.

Considering that the second half of the financial year is weaker than the first half for IT services companies, Wipro risks clocking a full-year revenue decline in FY24.

Worryingly for investors, the company has forecast its quarterly revenue to fall as much as 3.5% sequentially in constant currency terms in the December quarter, implying that for the first time in the company’s history, business has shrunk in each of the four quarters of 2023. Constant currency does not account for exchange rate fluctuations.

Wipro’s revenue in the fiscal second quarter totalled $2.71 billion, a 2.3% sequential decline and a 3.7% fall from the year-ago period. In constant currency terms, sequential growth fell 2%. Net income fell 9% sequentially to $318.5 million amid a 13% jump in expenses.

A Bloomberg survey of 27 analysts estimated profit to come in at $348.7 million on net sales of $2.75 billion.