Wipro in focus after TCS, Infosys declare Q2 results

Investors' gaze will now be on Azim Premji-controlled Wipro after the top two IT software services companies — Tata Consultancy Services (TCS) and Infosys — declared their September quarter (Q2) results on Thursday and Friday, respectively.

Of particular interest, will be the company's revenue numbers and whether they exceed the $1,931 million to $1,950 million guidance for the September quarter given by the company when it declared its June quarter results in July. The revenues came in at $1,930.8 million for the June quarter.

Wipro shares were trading at Rs 475 on the BSE at around 12.49 pm.  

Infosys, which declared its Q2 results on Friday, reported 8.2 percent YoY to $2,587 million and 3.5 percent on a sequential basis. However, the company slashed its full-year revenue guidance in constant currency terms to 8-9 percent from 10-5-11.5 percent given after the declaration of June quarter results.

TCS reported 5.2 percent YoY growth in revenues to $4,374 million.

Both the companies had warned of headwinds from a revenue growth perspective during the quarter gone by.

"It has been an 'unusual Q2' for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter. In additional, volatility in markets like India and Latin America also muted revenue growth," N Chandrasekaran, CEO and MD of TCS, had said in a statement.

Infosys expressed similar views and lowered its revenue guidance for the current fiscal.

"While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance," Vishal Sikka, CEO of Infosys, said in a statement.

Infosys and TCS shares were trading with minor change at Rs 1,041.30 apiece (down 1.02 percent) and Rs 2,340.85 (up 0.53 percent), respectively, at around 1 pm.

The BSE Sensex was up 69 points at 27,712.