Wipro shares fall after disappointing quarterly results

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Wipro shares fall after disappointing quarterly results

The Wipro campus is seen in Bangalore on June 23, 2009. REUTERS Punit Punit ''

BENGALURU, January 13, Reuters -- Shares of Wipro Ltd fell by 6.3% on Thursday, a day after the Indian IT services provider reported subdued growth in quarterly profit while larger peers posted strong results amid upbeat demand outlook.

On Wednesday, Wipro posted a 30% increase in December-quarter revenue, but flat net profit growth, while Infosys INFY.NS raised its revenue forecast and Tata Consultancy Services TCS.NS predicted robust demand, saying they expect tech spending to continue, particularly for digital services. Wipro closed 11 large deals with a total contract value of more than $600 million in the third quarter, but analysts at Ambit capital said the total value was largely unchanged from the previous quarter.

Bengaluru-based Wipro said March-quarter revenue from the IT services segment would be $2,692 million to $2,745 million, compared to $2,639. In the December quarter, 7 million people were affected. The company said its pipeline showed a healthy mix of large and mid-sized deals.

Given the strong performance of Wipro in the last few quarters, along with positive demand commentary from the management, the guidance was underwhelming and would cause a drag on near-term share price performance, Motilal Oswal said in a note.

India's software services sector has won more business since the COVID 19 epidemic, as companies around the world are looking to boost their digital presence and demand IT services from cloud-computing to digital payment infrastructure to cybersecurity.

The Wipro shares have fallen 9.2% this year, after a more than 85% surge in 2021. Infosys and TCS gained more than 50% and 31% last year.