Wipro revenue outlook flat for first quarter

, 8:14 PM IST
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Bengaluru: Global software major Wipro has projected a flat sequential revenue growth from IT services segment for the first quarter (April-June) of fiscal 2017-18.

In a regulatory filing on the BSE on Tuesday, the IT major said revenue from IT services would be in the range of $1,915 million-1,955 million for the quarter (Q1) ending June 30, with dollar at the rate of Rs 66.26 as on March 31.

“We expect revenue from our IT services business to be in the range of $1,915 million to $1,955 million for the quarter ending June 30,” said the filing.

The city-based outsourcing firm posted $1,955 million revenue from IT services segment for the fourth quarter (January-March) of fiscal 2016-17, registering 3.9 per cent year-on-year, and 2.7 per cent sequentially or quarter-on-quarter growth.

The revenue from IT services for the quarter (Q4) was higher than the guidance range of $1,922 million-1,941 million the company gave ahead on January 25./Eom.

Unlike rival Infosys, Wipro does not give revenue guidance for the fiscal.

Dipen Shah, Senior Vice President – PCG Research at Kotak Securities Limited, giving his views on Q4FY17 Wipro results, said: “Wipro’s results were a mixed bag with revenues coming marginally higher and margins slightly lower v/s expectations. The guidance of (-)2 per cent- 0 per cent growth in 1QFY18 is a negative surprise and is due to cancellation of projects in the healthcare business as well as structural challenges in retail vertical. This, once again, reflects the need for better account management at Wipro.”

IANS