On January 19, Wipro, which is India's fourth-largest IT Services exporter, experienced a 7% decline in shares due to the company's uninspiring fourth-quarter revenue forecast and underwhelming deal wins. This caused the stock to potentially face its sharpest drop since July 2024. Trading at Rs 248.75, Wipro's stock emerged as the leading percentage loser in both the benchmark Nifty 50 and the IT index, with respective declines of 0.5% and 1%.
Anticipating a stagnant to 2% sequential increase in revenue for the fourth quarter, Wipro highlighted that this projection includes contributions from recent acquisitions. Jefferies analysts noted that softer deal bookings and project ramp-up delays significantly impacted the company's outlook for fourth-quarter growth, falling below expectations.
Amid this scenario, Wipro's third-quarter results led to a notable 7.2% drop in its U.S.-listed shares on the preceding Friday. The stark contrast between Wipro's muted outlook and its larger competitors such as Tata Consultancy Services and Infosys is clear. Both TCS and Infosys reported steady deal wins and exceeded revenue expectations during the typically slower third quarter season.
The outlook for Wipro remains uncertain as it faces challenges due to subdued deal bookings and delays in project executions. Despite being a key player in India's IT services sector, the company struggled to generate the desired momentum in the midst of competitive market conditions. This decline in stock value further reinforces the significance of consistent growth strategies and robust deal captures in order to stay ahead in the industry.
