Wipro Q4 Guidance Weak: A Step Forward, But Not Quite Enough
Wipro just wrapped up its third quarter for the financial year, and the numbers tell a story of slow but steady progress mixed with some lingering worries. The company’s IT services arm brought in about $2.6 billion in revenue, marking a modest 1.4% growth from the previous quarter when adjusted for currency fluctuations. That’s a positive sign—they’re back in growth territory after some tough periods. But on the profit side, things dipped a bit, with net profit coming in around ₹3,119 crore, down about 7% from last year.
Deal wins were decent, with total contract value at $3.3 billion, though that’s slightly lower than the year before. Overall, it’s a performance that shows Wipro is stabilizing, but not exactly racing ahead like some of its peers in the IT space.
The Big Concern: Wipro’s Q4 Guidance Falls Flat
Here’s where things get tricky—the outlook for the next quarter, Q4. Wipro Q4 guidance points to revenue growth between 0% and 2% quarter-on-quarter in constant currency terms. That includes a boost from the recent Harman acquisition, but strip that out, and the organic picture looks even softer, potentially flat or slightly negative.
Management pointed to a few headwinds: fewer working days in the quarter, delays in ramping up some big deals, and clients still being cautious with spending on non-essential projects. It’s not a disaster, but in an industry where everyone’s watching for signs of a stronger recovery, this Wipro Q4 guidance feels underwhelming and cautious.
Market Reaction: Shares Take a Sharp Hit
Investors didn’t hold back their disappointment. Wipro shares tumbled as much as 9.5% in trading, hitting a low around ₹241 on the BSE. That kind of drop says a lot—the market was hoping for more upbeat signals, especially with the broader IT sector showing flickers of hope. By the end of the session, the stock was deep in the red, reflecting broader concerns about near-term growth in Indian IT giants.
What Analysts Are Saying: A Split Verdict
Brokerages have weighed in with a range of opinions, making it a tough call for investors wondering whether to buy, hold, or sell.
Jefferies is pretty bearish, sticking with an underperform rating and a target of just ₹220, citing limited earnings growth ahead. Elara Securities echoes that caution with a sell call and the same ₹220 target, worried about margins getting squeezed.
On the brighter side, Nomura is holding onto a buy recommendation, though they trimmed their target to ₹290 from ₹300 earlier. They like the potential dividend support. Motilal Oswal takes the middle ground with a neutral stance and ₹275 target, noting the limited visibility for quick turnaround.
It’s clear the street is divided—some see value for patient investors, while others think the risks outweigh the rewards right now.
Looking Ahead: Reasons to Be Cautious Yet Hopeful
Wipro seems to be turning a corner with sequential growth and solid deal pipeline in places, but the road ahead looks bumpy. Client budgets remain tight, and any pickup in discretionary spending could take time. For now, the weak Wipro Q4 guidance has put a damper on sentiment.
If you’re holding Wipro shares, it might pay to watch how the next few months unfold, especially around deal executions. New investors? This could be a wait-and-see moment unless you’re in for the long haul.
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- Wipro shares crash 9.5%, brokerages see downside till Rs 220. What should investors do? (Economic Times)
- Wipro Q3 review: Soft revenue, muted guidance keep brokerages cautious – (Business Standard)
- Wipro Q4 Guidance Weak | విప్రో Q4 గైడెన్స్ బలహీనం: షేరు కొనాలా, హోల్డ్ చేయాలా లేక సెల్ చేయాలా?
